Allen Family Foods, Inc. - Page 5




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               As indicated, respondent filed Motions to Dismiss for Lack             
          of Jurisdiction and to Strike the allegations in the petitions              
          relating to shareholder basis and the accuracy-related penalty.2            
          Petitioners filed objections to respondent's motions.                       
               These cases were called for hearing at the Court's motions             
          session in Washington, D.C.  Counsel for both parties appeared at           
          the hearing and offered argument in support of their respective             
          positions.  Following the hearing, both parties filed memoranda             
          with the Court.                                                             
          Discussion                                                                  
               The Tax Court is a court of limited jurisdiction, and we may           
          exercise our jurisdiction only to the extent authorized by                  
          Congress.  See sec. 7442; Judge v. Commissioner, 88 T.C. 1175,              
          1180-1181 (1987); Naftel v. Commissioner, 85 T.C. 527, 529                  
          (1985).                                                                     
               These cases are before the Court pursuant to the unified               
          subchapter S corporation audit and litigation procedures set                
          forth in subchapter D of chapter 63 of subtitle F.3  The                    

               2  Insofar as the paragraphs of the petitions described                
          above are concerned, we regard respondent as moving to strike               
          paragraphs 6(i) and (j) of both the Hatchery and Foods petitions,           
          as well as paragraphs 6(k), (l), and (m) of the Hatchery                    
          petition.                                                                   
               3  Subchapter D of chapter 63 of subtitle F, consisting of             
          secs. 6241-6245, was codified pursuant to the Subchapter S                  
          Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691-             
          1692.  This subchapter was repealed applicable to tax years                 
                                                             (continued...)           





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