James L. and Eva J. Downs - Page 5




                                        - 5 -                                         
          partnership loss of $810 from Utah Jojoba I.  In a partnership              
          proceeding, Utah Jojoba I Research v. Commissioner, T.C. Memo.              
          1998-6, the Court determined that the partnership’s claimed loss            
          deductions for 1982 and 1983 were not allowable.  The resultant             
          adjustments to petitioners’ 1982 and 1983 Federal income taxes              
          resulted in deficiencies of $9,286 and $162, respectively.  See             
          sec. 6225.                                                                  
          Validity of Notice of Deficiency.                                           
               Petitioners contend that they were unaware that the Utah               
          Jojoba I partnership was being audited and that there was                   
          litigation in the Tax Court.  Petitioners claim that they                   
          received no correspondence from the Commissioner or from the tax            
          matters partner until they were notified of the computational               
          adjustment resulting from the partnership level proceeding.                 
          While it is not clear, it appears that petitioners are claiming             
          that the notice of deficiency for the affected items is invalid.            
          Petitioners contend that if they had been notified about the                
          audit and litigation, they would have “taken care of the matter             
          at an earlier date” instead of having to deal currently with the            
          additions to tax and accrued interest.                                      
               Petitioners rely on a letter found in respondent’s file.               
          The letter was prepared by the Internal Revenue Service (IRS) and           
          addressed to 13723 Walnut Street, Whittier, CA (the Walnut Street           
          address).  A copy of an envelope attached to the letter bears a             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011