Alejandrina De Aycardi - Page 8

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          to penalties but not to the underlying tax.  United States v.               
          Boyle, 469 U.S. 241, 252 (1985).                                            
               We conclude that the dividend income petitioner received on            
          her mutual fund investment does not qualify as nontaxable                   
          interest income under section 871(h).  For consistency with the             
          rate of tax as applied in respondent's notice of deficiency, we             
          -- at respondent's request -- sustain respondent's imposition of            
          the 20-percent withholding tax rate on petitioner's dividend                
          income.                                                                     
               To reflect the foregoing,                                              

                                                  Decision will be entered            
                                             under Rule 155.                          

























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