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OPINION OF THE SPECIAL TRIAL JUDGE
ARMEN, Special Trial Judge: This matter is before the Court
on respondent’s motion to dismiss for lack of jurisdiction.
Respondent maintains that Edwin R. Adorno (Mr. Adorno), the
individual who signed the petition, is not a proper party
authorized to bring suit on behalf of The Adorno Business Company
(Adorno Business) under Rule 60. As discussed in detail below,
we shall grant respondent’s motion and dismiss this case for lack
of jurisdiction.
Background
A. Notice of Deficiency
Respondent issued a notice of deficiency to Adorno Business
determining a deficiency in its Federal income tax for the
taxable year 1998 in the amount of $758,744 and an accuracy-
related penalty under section 6662(a) in the amount of $151,749.
In the notice of deficiency, respondent disallowed the
deductions claimed by Adorno Business on Schedule C, Profit or
Loss from Business, because it “failed to establish the amount,
if any, that was paid during the taxable year for ordinary and
necessary business expenses and you failed to establish the cost
or other basis of the property claimed to have been used in
business”. Respondent also disallowed the income distribution
deduction claimed by Adorno Business because it “failed to
establish that the requirements for deduction of IRC sections 651
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Last modified: May 25, 2011