Adorno Business Company - Page 2

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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