IRS Issues Action on Decision Acquiescing in Part to Tax Court’s Mandatory 60-Day COVID Postponement Holding

The IRS issued an Action on Decision acquiescing only to the Tax Court’s holding in Abdo v. Commissioner, 162 T.C. 148 (04/02/24), that the originally enacted version of I.R.C. §7508A(d) provided a mandatory 60-day postponement of certain tax-related deadlines from January 20, 2020, to March 20, 2020, in connection with the COVID-19 disaster declarations. The IRS disagreed with the court’s reasoning and its invalidation of Treas. Reg. §301.7508A-1(g), maintaining that former §7508A(d) required the Secretary to first exercise discretionary authority under §7508A(a) before triggering the mandatory minimum postponement, and stated it will continue to defend that regulatory interpretation in future ...