Gerald D. Ward and Joan Ward (Deceased) v. Commissioner of Internal Revenue

EDITH H. JONES, Circuit Judge:

Gerald Ward appeals from an order of the Tax Court dismissing for untimeliness of his petition for redetermination of a deficiency, 92 T.C. 949. 26 U.S.C. § 6213(a). When issuing its final order, the Tax Court set aside a prior default judgment favoring petitioners. Although we conclude that the Tax Court did not abuse its discretion by setting aside its prior ruling, we find that the IRS failed to exercise reasonable diligence in ascertaining Ward’s “last known address.” Accordingly, we reverse the Tax Court’s decision on the merits, and remand with instructions…