- 4 -
petitioners' fractional interest in the oil produced and saved
from the property was 79.39/80.00 of one-eighth royalty interest
(or 0.1240468 in decimal).
During the years at issue, petitioners received and reported
on their tax returns gross royalty income from the well
identified as Muldavin 2-13 in the following amounts:
Year Amount
1985 $598,561
1986 419,957
1987 287,085
1988 169,347
1989 157,944
In respondent's determinations, the foregoing amounts were
reduced to take into account windfall profit taxes, depletion
allowance at 15 percent, legal fees, and State severance taxes.
Discussion
In order to enable us better to focus on the question of the
proper depletion allowance, we first address the following other
issues raised by petitioners:
(1) They contend that our jurisdiction is defective because
respondent lacked authority to issue the deficiency notices
involved herein. Those assertions are similar to those raised by
tax protesters which have been uniformly rejected by cases too
numerous to cite. They are totally without merit.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011