Astrida Terauds - Page 2

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                         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               

               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).                                          

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