Alphonse Mourad - Page 12

                                       - 12 -                                         
          return.  Under these circumstances petitioner is ineligible for             
          low-income housing credits.                                                 
          C.   Alleged Waiver of Petitioner’s Income Taxes                            
               Lastly, petitioner argues that respondent “waived all claims           
          for payment [of taxes] * * * at the September 26, 1997 bankruptcy           
          court confirmation hearing.”  At the plan confirmation hearing,             
          counsel for the Commissioner withdrew a previous objection                  
          because the confirmed plan called for the full payment of                   
          employment taxes due and owing by V&M Management.  There were no            
          claims against V&M Management for income tax liabilities because            
          an S corporation is not generally liable for income tax.                    
               We agree with respondent that petitioner is obviously                  
          confusing V&M Management with himself.  The record demonstrates             
          that V&M Management, and not petitioner, filed a petition for               
          reorganization in bankruptcy.  The Commissioner filed proofs of             
          claim in the bankruptcy case for unpaid employment taxes.  It was           
          these taxes, owed by V&M Management, which were at issue in the             
          bankruptcy proceeding.  A plan of reorganization was confirmed by           
          the bankruptcy court to which the Commissioner had no objection.            
               In contrast, here, petitioner filed a petition seeking                 
          redetermination of a deficiency of income taxes determined                  
          against him.  V&M Management is not a party to these proceedings.           
          Although the amount of the deficiency that respondent determined            
          is directly related to the sale of the Mandela Apartments by V&M            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011