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This matter is before the Court on respondent’s motion to
dismiss for lack of jurisdiction, as supplemented. Respondent
maintains that the petition was not filed by a trustee authorized
to bring suit on behalf of Deschutes Road Trust (Deschutes).2
Deschutes opposes respondent’s motion to dismiss. As discussed
in detail below, we shall grant respondent’s motion, as
supplemented.
Background
A. Notice of Deficiency
Respondent issued a notice of deficiency to Deschutes
determining deficiencies in its Federal income taxes and
accuracy-related penalties under section 6662(a) as follows:
Year Deficiency Accuracy-related Penalty
1997 $14,028 $2,805
1998 13,983 2,797
The deficiencies in income taxes are based on the disallowance of
deductions claimed by Deschutes on Schedules E, Supplemental
Income and Loss. In this regard, respondent determined that the
deductions:
are disallowed because you 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.
2 Use of the terms “trust” and “trustee” (and their
derivatives) are intended for narrative convenience only. Thus,
no inference should be drawn from our use of such terms regarding
any legal status or relationship.
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Last modified: May 25, 2011