- 3 -
under section 6673. In docket Nos. 1366-00 through 1371-00,
respondent filed a supplement to the motion to dismiss wherein
respondent noted that the respective dockets were related to the
lead docket No. 18510-99. A hearing was held with respect to the
motions filed in the respective dockets.
The notice of deficiency issued to petitioners David R. and
Darlene Funk in docket No. 18510-99 determined that petitioners
failed to report various items of gross income including Schedule
E, Supplemental Income and Loss, rental and royalty income.
Also, respondent determined that petitioners must include on
their individual return self-employment income reflected on trust
income tax returns which were the subject matter of the related
dockets. The notices of deficiency in the trust cases (docket
Nos. 1366-00 through 1371-00) indicate that, although income was
reported on respective trust returns, a zero tax liability was
reflected as a result of claimed deductions equaling or exceeding
the income reported. The notices of deficiency issued to the
trusts disallowed Schedule C, Profit or Loss From Business,
expenses claimed on the trust returns.2
2 We cannot determine from this record whether respondent
seeks to impose a tax on the same income against both the trusts
and the individuals. To the extent respondent has taken a
position in the notice of deficiency issued to petitioners David
and Darlene Funk inconsistent with the position in the notices of
deficiency issued to the trusts, we shall issue an order under
Rule 155 directing respondent to provide computations in all
dockets that reflect consistent treatment of income and
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011