- 2 - * This opinion supplements our previously filed Memorandum Findings of Fact and Opinion in Hernandez v. Commissioner, T.C. Memo. 1998-46, filed Feb. 5, 1998. gross income under sec. 1.103-1(b), Income Tax Regs., which states: "Certificates issued by a political subdivision for public improvements * * * which are evidence of special assessments * * * and which the political subdivision is required to enforce, are, for purposes of this section, obligations of the political subdivision". Held: The language at issue in sec. 1.103-1(b), Income Tax Regs., is restricted to special assessment obligations that are issued by a State or political subdivision in exercise of its sovereign borrowing power to finance public improvements. The tax certificates in this case are issued by a State or political subdivision as a means of collecting delinquent taxes in the exercise and enforcement of its taxing power, not as a means of raising capital to finance public improvements. Accordingly, sec. 1.103- 1(b), Income Tax Regs., does not apply. John R. Hernandez, pro se. Charles Baer, for respondent. SUPPLEMENTAL MEMORANDUM OPINION BEGHE, Judge: This matter is before us on petitioner's motion under Rule 1611 for reconsideration of our opinion in Hernandez v. Commissioner, T.C. Memo. 1998-46 (Hernandez I). Hernandez I held that tax certificates sold by the Pasco County, 1 All section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure, unless otherwise indicated.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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