- 2 -
adopts the Special Trial Judge's opinion, which is set forth
below.
OPINION OF THE SPECIAL TRIAL JUDGE
PAJAK, Special Trial Judge: This case is before the Court
on respondent's Motion to Dismiss for Lack of Prosecution and
respondent's Motion to Award Damages pursuant to section 6673.
Respondent determined a deficiency in and additions to
petitioners' Federal income tax, with increased interest, as
follows:
Increased
Interest
Additions to Tax under Sections under Section
Year Deficiency 6653(a)(1) 6653(a)(2) 6661 6621(c)
1983 $25,256 $1,263 1 6,314 2
1 50 percent of the interest due on $25,256, which is the
underpayment of tax due to negligence.
2 $16,800 of the deficiency is a substantial underpayment
attributable to a tax motivated transaction for purposes of
computing the interest payable with respect to such amount under
section 6621(c).
The Court must decide whether respondent's motion to dismiss
for lack of prosecution should be granted and whether petitioners
are liable for a penalty under section 6673.
For clarity and convenience, the findings of fact and
conclusions of law have been combined.
Petitioners lived in Broken Arrow, Oklahoma, when their
petition was filed. Petitioners filed their petition on October
19, 1987. They put the entire amount set forth in the notice of
deficiency into controversy.
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