Slip opinions decided 2004 — Tax Court Memorandum

Ps filed a motion for reconsideration, and an amended motion for reconsideration, of our opinion in . Goettee v. Comm'r, T.C. Memo 2003-43, 2003 Tax Ct. Held: Ps' amended motion for reconsideration is denied.

On a Motion for Reconsideration of Findings or Opinion and a Motion to Vacate or Revise a Decision, under, respectively, Rules 161 and 162, Tax Court Rules of Practice and Procedure, Ps… Held: Ps have failed to point to any substantial errors of fact or law or to present any newly discovered evidence that could not have been introduced previously even if Ps had exercised due diligence. Estate of Quick v. Commissioner, 110 T.C. 440 (1998), applied. Ps' Motions will be denied.

P filed a petition for judicial review pursuant to sec. 6330, I.R.C., in response to a determination by R that levy action is appropriate. Held : Because there was no abuse of discretion by R in rejecting P's offer in compromise, R's determination to proceed with collection action is sustained.

Held: PH's debts to lender were discharged pursuant to discharge order in ch. 7 bankruptcy case, notwithstanding failure of lender to… Held: PH's debts to lender were discharged pursuant to discharge order in ch. 7 bankruptcy case, notwithstanding failure of lender to file proofs of claim; lender's foreclosure therefore gave rise to excludable discharge of indebtedness income, which reduced PH's tax attributes pursuant to sec. 108(b), I.R.C., in amount of unsatisfied debt…

Respondent determined deficiencies for petitioner's 1997, 1998, and 1999 taxable years based primarily on the disallowance of amounts claimed as business expense deductions. Held: Because petitioner failed to substantiate claimed deductions, he is liable for income tax deficiencies for 1997, 1998, and 1999. Held, further, petitioner is liable for sec. 6662(a), I.R.C., accuracy-related penalties with respect to the years in issue.

In Charlotte's Office Boutique, Inc. v. Commissioner, 121 T.C. 89 (2003), an employment tax case brought under sec. 7436(a), I.R.C., we held… Held: The Court has jurisdiction to redetermine the additions to tax at issue. Held, further, sec. 6651(a)(1), I.R.C., applies to P's failure to file the Forms 941 in that Form 941 is not an information return required to be filed under authority of pt. III but is a tax return required to be filed under authority of pt. II of subch.

Ps submitted multiple offers in compromise with respect to    their reported but unpaid Federal income tax liabilities for    1993 and 1994. R did not accept any of Ps' offers. Ps requested    abatement of interest under sec. 6404(e), I.R.C., on the ground    that R unreasonably delayed the processing of their offers in    compromise. R rejected Ps' request for interest abatement.      Held: Ps have failed to establish that any delay in    their payment of their 1993 and 1994 tax liabilities is    attributable to any action or inaction on the part of IRS    personnel in processing Ps' offers in compromise; therefore,    interest is not abatable under sec. 6404(e), I.R.C., and R did    not abuse his discretion in rejecting Ps' request for abatement.

P and H filed a joint 1996 Federal income tax return on which H failed to report a taxable distribution from his individual retirement account (IRA). Held: because there is no tax deficiency, P is ineligible for relief under sec. 6015(b) and (c), I.R.C. 2. Held, further, under the facts and circumstances, R's denial of equitable relief under sec. 6015(f), I.R.C. , constitutes an abuse of discretion.

Petitioners included with their 1998 Federal income tax return a Schedule C, Profit or Loss From Business, for Shrike Cars. Held: Petitioners are not entitled to reduce their 1998 gross income by the $ 448,120 claimed net loss derived from the Shrike Cars enterprise. Held, further, petitioners are liable for the sec. 6651(a)(1), I.R.C., addition to tax for failure timely to file their 1998 income tax return.

THE CONNELL BUSINESS COMPANY, ET AL., 1Cases of the following petitioners are consolidated herewith: The Connell Family Trust, docket No. 13668-01; The Connell Vehicle Co., docket No. 13669-01; The Connell Vehicle Co. #101, docket No. 13670-01; Thomas E. and Sara Anne Connell, docket No. 13671-01.                Petitioners                  v.          COMMISSIONER OF INTERNAL REVENUE,                Respondent

D executed a will in 1991 which provided for the creation of a trust that was to be funded with an amount equal to the aggregate federal estate tax exemption… Held: The trust was funded both by (1) assets in an amount equal to the aggregate federal estate tax exemption equivalent, and also by (2) the interests in the securities disclaimed by D's wife. Since the trust was therefore overfunded, the estate is liable for a deficiency in estate tax, as determined by respondent.

P filed a petition for judicial review pursuant to sec.    6330, I.R.C., in response to a determination by R that levy    action is appropriate.   Held: Because there was no abuse of discretion by R    in concluding that P's noncompliance with Federal tax filing    obligations would render him ineligible for collection    alternatives, R's determination to proceed with collection    action is sustained.

P failed to file a Federal income tax return for the 1997 year. R subsequently determined a deficiency and additions to tax, which P then contested on the basis of tax protester arguments. Held: P is liable for the deficiency determined by R, for additions to tax under secs. 6651(a)(1) and 6654, I.R.C., and for a penalty under sec. 6673, I.R.C.

P filed a petition for judicial review pursuant to sec. 6330, I.R.C., in response to a determination by R that levy action is appropriate for the taxable years 1985 and 1999. Held: With respect to 1985, R's determination to proceed with collection action is sustained. With respect to 1999, the case is remanded for further consideration by the Internal Revenue Service Office of Appeals.

P filed a petition for judicial review pursuant to sec. 6330, I.R.C., in response to a determination by R that levy action was appropriate. Held: Because the record shows that no period of limitations precludes collection and because P failed to submit any current financial documentation in support of her claims of inability to pay, R's determination to proceed with collection action is sustained.

Respondent determined deficiencies and additions to tax for petitioner's 1999 and 2000 taxable years. Held: Petitioner received taxable income during 1999 and 2000, and a portion thereof is subject to self-employment tax. Sec. 861, I.R.C., and regulations thereunder, do not exempt his compensation from tax.

P timely petitioned this Court to review R's determination to proceed with collection of assessments against P for 1993-96. After concessions by both parties, only 1996 remains in issue. Held: On the basis of the evidence, the determination by R's Appeals officer to proceed with collection of the assessments against P for 1996 is sustained.

Michael L. Scheier and Jennifer J. Morales, for affected person United Surgical Partners International, Inc.