OPINION WHERRY, Judge. The sole issue before this Court is whether we have subject matter jurisdiction. Petitioner argues we do not; respondent argues we do. We agree with respondent. Background The following recitation of facts is drawn primarily from Mary Helen Norberg's (Ms. Norberg) motion to dismiss for lack of subject matter jurisdiction (motion to dismiss) and responses filed by both parties. We note that our recitation of "facts" is solely for the purpose of ruling on the motion...
MEMORANDUM FINDINGS OF FACT AND OPINION HAINES, Judge. Respondent determined a deficiency in petitioners' Federal income tax of $1,302,102 and an accuracy-related penalty under section 6662(a) of $260,420 for 2003. 1 After stipulations 2 the issues remaining for decision are: (1) Whether Portfolio Properties, Inc. (PPI), an S corporation incorporated under the laws of Illinois, must include $1,190,500 in income for 2003; 3 (2) whether PPI is entitled to deduct in 2003 legal and...
DEAN, Special Trial Judge. This case was heard pursuant to the provisions of section 7463 of the Internal Revenue Code in effect when the petition was filed. Pursuant to section 7463(b), the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case. Unless otherwise indicated, subsequent section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules...
MEMORANDUM OPINION KROUPA, Judge. This matter is before the Court on respondent's motion for partial summary judgment filed pursuant to Rule 121. 1 Respondent asks this Court to decide, as a matter of law, that the statute of limitations does not bar assessment of tax attributable to certain partnership items of Jason Chai (petitioner) that were converted to nonpartnership items for 2003. Our decision turns on whether petitioner validly agreed to extend the applicable limitations period. We...
MEMORANDUM FINDINGS OF FACT AND OPINION CHIECHI, Judge. Respondent determined deficiencies in, and an addition under section 6651(a)(1) 1 to, petitioners' Federal income tax (tax) as follows: Addition to Tax Under Year Deficiency Section 6651(a)(1) 2005 $64,646 $3,158.25 2006 1,855 _ 2007 58,693 _ The issues remaining for decision are: (1) Do petitioners have unreported income of $100,809.88, $2,637.06, and $5,720.93 for...
MEMORANDUM FINDINGS OF FACT AND OPINION CHIECHI, Judge. Respondent determined a deficiency of $14,186 in, and an accuracy-related penalty of $2,284 under section 6662(a) 1 on, petitioners' Federal income tax (tax) for their taxable year 2007. The issues remaining for decision for petitioners' taxable year 2007 are: (1) Are petitioners entitled to exclude from gross income under section 104(a)(2) an arbitration award of $79,329.34 We hold that they are not. (2) Are petitioners liable for...
RUWE, Judge. This case was heard pursuant to the provisions of section 7463 1 of the Internal Revenue Code in effect when the petition was filed. Pursuant to section 7463(b), the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case. Respondent determined deficiencies of $25,574 and $16,556 in petitioners' Federal income taxes for 2006 and 2007, respectively. The only issue for decision is whether petitioners are...
MEMORANDUM FINDINGS OF FACT AND OPINION MARVEL, Judge. Pursuant to section 6015, petitioner seeks review of respondent's determination to deny relief from joint and several liability for unpaid Federal income taxes for 1997-2000 under section 6015(f). 1 Petitioner timely petitioned this Court. The sole issue for decision is whether petitioner is entitled to relief under section 6015(f). FINDINGS OF FACT Some of the facts have been stipulated. The stipulations of facts are incorporated...
MEMORANDUM OPINION HAINES, Judge. Respondent determined a deficiency in petitioners' Federal income tax for 2006 of $86,441 and a penalty under section 6662(a) of $17,288. 1 The issues for decision are: (1) Whether petitioners are required to include in income $263,587 of cancellation of indebtedness income (COI income) for taxable year 2006 as reported by the Defense Finance and Accounting Services (DFAS); (2) if so, whether the $263,587 of COI income reported is the correct amount; and (3)...
CARLUZZO, Special Trial Judge. This case was heard pursuant to the provisions of section 7463. 1 Pursuant to section 7463(b), the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case. In a notice of deficiency dated October 19, 2009, respondent determined a $4,884 deficiency in and a $743.73 section 6651(a)(1) addition to tax with respect to petitioner's 2007 Federal income tax. After concessions, 2 the issue for...
MEMORANDUM FINDINGS OF FACT AND OPINION HAINES, Judge. The issue for decision is whether petitioner is entitled to relief from joint and several liability under section 6015(f) 1 for taxes reported on joint Federal income tax returns for 1999, 2000, and 2001 (years at issue). FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts, together with the attached exhibits, is incorporated herein by this reference. At the time petitioner filed her...
MEMORANDUM FINDINGS OF FACT AND OPINION LARO, Judge. These consolidated cases concern the 1989 and 1990 Federal income taxes of Charles L. Garavaglia (Mr. Garavaglia) and Mary Ann T. Garavaglia (Ms. Garavaglia) (collectively, the Garavaglias or petitioners). Respondent determined deficiencies in Mr. Garavaglia's 1989 and 1990 Federal income taxes of $97,070 and $114,435 and fraud penalties under section 6663(a) of $72,803 and $85,826, respectively. 1 Respondent amended the answer to assert...
MEMORANDUM OPINION KROUPA, Judge. This matter is before the Court on respondent's motion for partial summary judgment filed pursuant to Rule 121. 1 Respondent issued Mercato Global Opportunities Fund, LP (Mercato), two notices of final partnership administrative adjustment (FPAAs) for 2003 and 2004 (years at issue). Respondent asks this Court to hold, as a matter of law, that the FPAAs were issued before the relevant limitations period for assessment of tax for partnership and affected items...
WHERRY, Judge. Each of these consolidated cases constitutes a partnership-level proceeding under the unified audit and litigation provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, sec. 402(a), 96 Stat. 648, commonly referred to as TEFRA. The issues for decision are: (1) Whether a bona fide partnership was formed for Federal tax purposes between a Brazilian retailer and a British Virgin Islands company for purposes of servicing and collecting distressed...
MEMORANDUM FINDINGS OF FACT AND OPINION GOEKE, Judge. Respondent determined a deficiency of $44,625 and an accuracy-related penalty of $8,925 under section 6662(a) 1 for 2007. After a concession, 2 the issues remaining for decision are: (1) Whether petitioners are entitled to a flowthrough deduction under section 179 for expenses of an aircraft owned by an S corporation, Bantam Leasing, Inc. (Bantam). We hold that they are not; (2) whether petitioners are liable for an increased...
MEMORANDUM FINDINGS OF FACT AND OPINION VASQUEZ, Judge. Respondent determined a $54,674 deficiency in petitioners' Federal income tax for 2005. After concessions, 1 the issue for decision is whether petitioners failed to report $19,207 of income on their Schedule C, Profit or Loss From Business, for Future Satellite Communications (Future Satellite). 2 FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulations of facts and the attached exhibits are...
MEMORANDUM FINDINGS OF FACT AND OPINION GOEKE, Judge. On April 30, 2009, respondent issued to Mr. and Mrs. Wood (the Woods) a notice of deficiency for the taxable years 2001, 2002, and 2003 determining income tax deficiencies of $68,029, $78,941, and $6,661, respectively. The deficiency notice also determined accuracy-related penalties under section 6662(a) 2 in the respective amounts of $13,605.80, $15,788.20, and $1,332.20 for the years at issue. The Woods seek review of respondent's...
MEMORANDUM OPINION GOEKE, Judge. This case is before us on petitioner's motion for recovery of reasonable litigation costs under Rule 231, 1 to which respondent objects. For the reasons explained herein, we will deny petitioner's motion. We will begin with a full exposition of the history of this case. Background Michael J. Hogan was a resident of Ohio when the petition was filed. This is a collection case involving a proposed levy to collect income tax liabilities for the years 1984, 1989,...
MEMORANDUM OPINION THORNTON, Judge. Respondent determined a $716,013 Federal estate tax deficiency. After various concessions by respondent, the sole issue for decision is whether pursuant to section 2041 the gross estate of Ann R. Chancellor (decedent) must include the value of the assets of a trust of which she was a beneficiary and trustee. 1 She died November 16, 2004, and at the time of her death was domiciled in Mississippi. When the petition was filed, Mary Ann C. Walker, executrix,...
MEMORANDUM FINDINGS OF FACT AND OPINION WELLS, Judge. Respondent determined a deficiency in the Federal estate tax of the Estate of Emilia W. Olivo (the estate) of $348,852.05 and a penalty of $13,309.29 pursuant to section 6662(g). 1 After concessions, the issues we must decide are: (1) Whether the estate is entitled to deduct as an expense the claim on the estate tax return for services rendered by Anthony M. Olivo (Mr. Olivo), the son of Emilia W. Olivo (decedent) to decedent before her...
