John R. Hernandez - Page 27

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          more stringent than the reasonable basis standard”.  Sec. 1.6662-           
          4(d)(2), Income Tax Regs.                                                   
               Section 1.6662-4(d)(3)(i), Income Tax Regs., states that               
          substantial authority for a taxpayer’s treatment of an item                 
          exists “only if the weight of the authorities supporting the                
          treatment is substantial in relation to the weight of authorities           
          supporting contrary treatment.”                                             
               With respect to the issue of whether petitioner may exclude            
          tax certificate interest under section 103(a), petitioner did not           
          have substantial authority to support such an exclusion.  This              
          Court had issued a Memorandum Opinion directly on point, Barrow             
          v. Commissioner, T.C. Memo. 1983-123, long before petitioner                
          filed his income tax return for any of the tax years in question.           
          That Memorandum Opinion is substantial authority that directly              
          contradicts petitioner’s position.  Sec. 1.6662-4(d)(3)(iii),               
          Income Tax Regs.                                                            
               Petitioner stated in open court that he would show that our            
          opinion in Barrow v. Commissioner, supra, is wrong.  He has                 
          failed to do so.  Indeed, he has cited no authority at all to               
          support his position, nor has he provided any persuasive                    
          reasoning to support his assertions so as to invoke section                 
          1.6662-4(d)(3)(ii), Income Tax Regs.                                        
               Petitioner did not cite any authority supporting his failure           
          to report additional tax certificate interest income in the tax             
          years in question, nor did he adduce any credible evidence that             



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