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After concessions,3 the issue for decision is how the
stipulations of settled issues and the stipulations to be bound
affected the corporation and Mr. Clendenen (collectively,
petitioners).
Discussion
The parties dispute the effect of the stipulations.
Respondent argues that the stipulations of settled issues and the
2(...continued)
a related case, Howard E. Clendenen, Inc. Employee Stock
Ownership Trust v. Commissioner, docket No. 18156-96. Respondent
intends to file such motion for entry of decision after the
resolution of the instant motions for entry of decision.
3 For the corporation, the parties agreed: (1) The
corporation’s contribution limit shall be increased by $829 for
the taxable year ended June 30, 1987; (2) the corporation’s
deductible interest expense shall be increased by $3,734 for the
taxable year ended June 30, 1989; (3) the corporation is entitled
to an additional deduction for employment taxes of $3,605 for the
taxable year ended June 30, 1989; and (4) certain issues are
computational in nature and determinable upon final resolution of
all issues in dispute. Further, for the corporation, respondent
conceded: (1) The increase to taxable income of $7,582 for
“Imputed Interest Income” for the taxable year ended June 30,
1988; and (2) the increase to taxable income of $7,498 for
“Imputed Interest Income” for the taxable year ended June 30,
1989.
Mr. Clendenen conceded: (1) Increases to taxable income of
$11,088 for “Dividend Income - Imputed Interest” and $4,761 for
“Interest Income” for 1988; (2) the adjustment of $2,873 for
“Itemized Deductions” for 1988; and (3) increases to taxable
income of $7,681 for “Dividend Income - Imputed Interest” and
$3,605 for “Dividend Income - FICA Tax” for 1989. Respondent
conceded for Mr. Clendenen: (1) The increase to taxable income
of $92,712 for “Capital Gains and Losses” for 1988; (2) the
addition to tax of $1,704 under sec. 6653(a)(1) for 1988; and (3)
the addition to tax of $237 under sec. 6662(a) for 1989.
Respondent and Mr. Clendenen agreed that this stipulation of
settled issues resolved all issues in dispute for 1988.
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