- 2 -
Rules 180, 181, and 183.1 The Court agrees with and adopts the
Opinion of the Special Trial Judge, which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
PAJAK, Special Trial Judge: Respondent determined
deficiencies in, additions to tax, and increased interest in
petitioners' Federal income taxes as follows:
Additions to Tax and Increased Interest
Sec. Sec. Sec. Sec. Sec.
Year Deficiency 6653(a) 6653(a)(1) 6653(a)(2) 6659 6621(c)
1978 $39,133 $1,956.65 -- -- -- *
1979 34,365 1,718.25 -- -- -- *
1980 94,226 4,711.30 -- -- -- *
1981 34,181 -- $1,709.05 ** $1,910.70 *
* Amount equal to 120 percent of the interest payable under
sec. 6601 with respect to any substantial underpayment attributable
to tax-motivated transactions.
** Amount equal to 50 percent of the interest due on $34,181,
the portion of the underpayment attributable to negligence.
This case was submitted fully stipulated under Rule 122.
The stipulated facts are so found. For clarity and convenience,
the facts and opinion have been combined.
The Court must decide whether a Closing Agreement executed
by the parties entitles petitioners to exclude from income
guaranteed payments received by petitioner husband from Federal
Arbitrage Company in 1980. (An issue with respect to Securities
Arbitrage Co., another partnership, was resolved in an opinion of
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended, and all Rule references
are to the Tax Court Rules of Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011