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commission is not disputed. Thus, there is a basis in fact.
Commissions on stock transactions generally are includable in
basis. The question herein is whether such includability applies
to a cash basis taxpayer where the commission has not been paid.
We have held that it should not be so included but we have also
held, in determining the application of the accuracy-related
penalty, that a technical question of tax law was involved.
Under such circumstances, we concluded that the claim in respect
of the commission is not a grossly erroneous item.
Since Mrs. Haymond has failed to satisfy one of the
conditions of section 6013(e)(1), she is not entitled to innocent
spouse relief. That being the case, we have no need to consider
whether she satisfied the remaining conditions of section
6013(e)(1).
In keeping with the above holdings,
Decision will be entered
for respondent as to the
deficiency and for petitioners
as to the penalty.
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Last modified: May 25, 2011