Michael Sklar and Marla Sklar - Page 2




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          adjustment concerning self-employment tax.  Petitioners do not              
          object to the concession of self-employment tax adjustment, but             
          to the corresponding elimination of the deduction for one-half              
          the conceded self-employment tax adjustment.  Respondent objects            
          to petitioners’ motion, solely on the ground that the period for            
          assessment was suspended under section 6503(a) at the time of the           
          determination.  There is no dispute about any material fact, and            
          this matter is ripe for summary judgment.                                   
                                     Background                                       
               Petitioners’ joint 1995 Federal income tax return was filed            
          October 15, 1996.  On April 18, 1999, and again on October 14,              
          1999, petitioners executed Forms 872, Consent to Extend the Time            
          to Assess Tax, agreeing to extend the assessment period to April            
          30, 2000, and October 31, 2000, respectively.                               
               Respondent issued a Notice of Deficiency to petitioners on             
          October 6, 2000, determining a $2,075 deficiency in income tax              
          and an $8,123 deficiency in self-employment tax for petitioners’            
          1995 taxable year.  The self-employment tax deficiency was based            
          on respondent’s determination that petitioners received $83,514             
          of self-employment income, rather than $6,694 of self-employment            
          income as reported on petitioners’ 1995 return.  Because of the             
          increase in self-employment tax liability, respondent                       
          correspondingly determined that petitioners were entitled to a              
          deduction equal to one-half of the self-employment tax or $4,062.           






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