John J. Petito - Page 3




                                         -3-                                          
          corporation would normally be excepted from the unified S                   
          corporation audit and litigation procedures as a “small S                   
          corporation” within the meaning of section 301.6241-1T(c)(2)(ii),           
          Temporary Proced. & Admin. Regs., 52 Fed. Reg. 3002 (Jan. 30,               
          1987), Petito corporation made a valid election on its 1986                 
          corporate income tax return to invoke the unified audit and                 
          litigation procedures.  See sec. 301.6241-1T(c)(2)(v)(B),                   
          Temporary Proced. & Admin. Regs., supra at 3003.                            
               Respondent filed an objection to petitioner’s motion                   
          asserting that petitioner had failed to provide any documentary             
          evidence, such as Petito corporation’s 1986 income tax return, to           
          support the proposition that Petito corporation made a valid                
          election under section 301.6241-1T(c)(2)(v)(B), Temporary Proced.           
          & Admin. Regs., supra.  Respondent further argued that, even                
          assuming that Petito corporation made such an election on its               
          1986 corporate income tax return, respondent should be permitted            
          to rely on Petito corporation’s tax return for 1992 on which                
          petitioner failed to check box G which states: “Check this box if           
          this S corp is subject to the consolidated audit procedures of              
          sections 6241 through 6245 (see inst before checking this box)”.            
               Petitioner filed a reply to respondent’s objection asserting           
          that respondent already had possession of Petito corporation’s              
          1986 income tax return.  Petitioner further argued that the Court           








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

Last modified: May 25, 2011