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effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioner’s 1994
Federal income tax of $4,706 and an accuracy-related penalty
under section 6662(a) of $941. The issues for decision are:
(1) Whether interest income realized upon the redemption of tax
certificates is attributable to petitioner, and (2) whether
petitioner is liable for an accuracy-related penalty under
section 6662(a).1
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. Petitioner resided in
Saint Leo, Florida, when the petition in this case was filed.
Petitioner has been in this Court before in a case involving
substantially the same facts as those presented here, Hernandez
v. Commissioner, T.C. Memo. 1998-46 (Hernandez I). In Hernandez
I, we held that interest paid on the redemption of tax
certificates sold by Pasco County, Florida, for delinquent taxes
owed on real property is not excluded from gross income under
section 103 because the tax certificates are not obligations of a
1 In the notice of deficiency, respondent determined that
petitioner was not entitled to the itemized deductions he claimed
on his 1994 Federal income tax return. In lieu of the itemized
deductions, respondent allowed petitioner a standard deduction.
This adjustment is a computational adjustment that is dependent
upon our determination whether petitioner failed to report
taxable interest income.
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