- 6 -
In 1991, a former client, Terry Stokke, sued petitioner for
allegedly committing fraud with respect to a pooled investment.
Petitioner settled the lawsuit in 1992 for $39,000 and reported
this amount as a Schedule C expense on their 1992 tax return.
At the time the petition was filed, petitioners resided in
Spokane, Washington.
OPINION
I. Jurisdiction
On October 18, 2000, the Court filed petitioners’ Motion To
Dismiss “Wages” Issue In 1992 For Lack Of Jurisdiction, in which
petitioners contended that Western’s 1995 payment of $22,583.20
in income tax withholding discharged petitioners’ tax liability
relating to petitioners’ 1992 unreported wages. We disagree.
Congress has specifically given this Court jurisdiction to
redetermine a deficiency if a valid notice of deficiency has been
issued and a petition has been timely filed. Secs. 6212(a),
6213(a), and 6214(a); Rule 13(a), (c); Monge v. Commissioner, 93
T.C. 22, 27 (1989); Normac, Inc. v. Commissioner, 90 T.C. 142,
147 (1988). Therefore, petitioners’ motion will be denied.
Petitioners further contend that the notice of deficiency is
invalid because respondent did not make a determination. In
support of their position, petitioners state that “the
unexplained arrows and rounding of * * * [the amounts of the
deficiencies] indicate vagueness.” In the notice, respondent
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011