Francisco A. Murillo - Page 7

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          we think it clear that allowance of petitioner's claimed                    
          deduction would frustrate a clearly defined national policy.                
               We hold that petitioner is not entitled to a loss deduction.           
               Constitutional Arguments                                               
               Petitioner argues that taxing the IRA distributions without            
          allowing a loss deduction for the forfeiture violates the Double            
          Jeopardy Clause of the Fifth Amendment3 and the Excessive Fines             
          Clause of the Eighth Amendment4 to the U.S. Constitution.                   
          Petitioner cites Department of Revenue v. Kurth Ranch, 511 U.S.             
          767 (1994); Austin v. United States, 509 U.S. 602 (1993); and               
          United States v. Halper, 490 U.S. 435, 440 (1989).                          
               Both the Double Jeopardy Clause and the Excessive Fines                
          Clause protect individuals against punishment.  United States v.            
          Alt, 83 F.3d 779, 784 (6th Cir. 1996).  The imposition of                   
          liability for a Federal income tax deficiency has a remedial                
          intent and is not a punishment.  Id.;  McNichols v. Commissioner,           
          13 F.3d 432 (1st Cir. 1993), affg. T.C. Memo. 1993-61; Ianniello            
          v. Commissioner, 98 T.C. 165, 180 (1992); cf. Helvering v.                  
          Mitchell, 303 U.S. 391, 397 (1938) (holding that the addition to            
          tax for fraud is remedial).  Courts have considered the cases               

               3  U.S. Const. amend. V provides "nor shall any person be              
          subject for the same offence to be twice put in jeopardy of life            
          or limb".                                                                   
               4  U.S. Const. amend. VIII provides "Excessive bail shall              
          not be required, nor excessive fines imposed".                              

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