Tax Court Opens Door for Employment Tax Challenge Extensions

The 90-day deadline for corporate taxpayers to challenge employment tax determinations can be temporarily extended by court order—even though a jewelry business before the court isn’t owed any extension, the US Tax Court ruled Tuesday.

Belagio Fine Jewelry Inc. mailed its petition to the Tax Court using FedEx Express Saver four days before the company’s 90-day deadline to file expired, but it only arrived at the court five days later—missing the deadline by a single day. The company’s attorney said his staff were meant to use FedEx Priority Overnight, and urged the court to subject the filing deadline to equitable ...