- 2 -
OPINION OF THE SPECIAL TRIAL JUDGE
COUVILLION, Special Trial Judge: Respondent determined
Federal income tax deficiencies of $10,703 and $7,954 and
additions to tax under section 6651(a)(1) of $2,675 and $2,815,
respectively, for petitioner's 1986 and 1987 tax years.2
After concessions, the issues for decision are: (1) Whether
petitioner is entitled to a dependency exemption under section
151(a) for her daughter Sandra for the year 1987; (2) whether
petitioner, for the year 1986, realized a long-term capital gain
in an amount less than that determined by respondent; (3) whether
petitioner, for the year 1986, is entitled to a deduction for
2
Petitioner elected to have this case considered as a Small
Tax Case under sec. 7463 even though the deficiencies in tax and
additions to tax for both years exceed $10,000. Sec. 7463 limits
the jurisdiction of this Court to consider a case under sec. 7463
to one in which neither the amount of deficiency placed in
dispute (including additions to tax) nor the amount of any
claimed overpayment exceeds $10,000 for any one taxable year.
Petitioner placed in dispute "approximately" $6,000 and $2,000 of
the deficiencies for 1986 and 1987 based upon her concession of
the following adjustments in the notice of deficiency:
Unreported dividend income of $8,872 and $8,784, respectively,
for 1986 and 1987, and unreported interest income of $13,412 and
$16,218, respectively, for 1986 and 1987. As a result of these
concessions, the deficiencies and additions to tax for each year
are well under $10,000. However, petitioner alleged in her
petition a claim for a credit or refund of an overpayment of
taxes but did not allege the amount of the overpayment. After
the case was heard and was taken under advisement, it became
apparent that the amount of a claimed overpayment would exceed
$10,000, at least for one of the years at issue. Therefore the
Court, pursuant to Rule 173, ordered that consideration of this
case under sec. 7463 be discontinued and that the case be
considered under sec. 7443A(b)(4).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011