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1980 and 1981 tax years was an abuse of discretion. Resolution
of this issue depends on resolution of the following issues:
1. Whether respondent’s loss of petitioners’ 1981-82
amended returns for almost 11 years was a ministerial act. We
hold that it was.
2. Whether respondent’s refusal to abate interest that
accrued from May 1987 to March 1998 on petitioners’ tax liability
for 1980 was an abuse of discretion. We hold that it was.
3. Whether respondent’s refusal to abate interest that
accrued other than during the time respondent lost petitioners’
1981-82 amended returns was an abuse of discretion. We hold that
it was not.
Section references are to the Internal Revenue Code as
amended. Rule references are to the Tax Court Rules of Practice
and Procedure. References to petitioner are to Nicholas J.
Palihnich.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
A. Petitioners and Their 1980-82 Tax Liabilities
Petitioners are married and lived in Hopkinton,
Massachusetts, when they filed the petition in this case.
1. Petitioners’ White Rim Investment and Respondent’s
Disallowance of Petitioners’ White Rim Deductions
Petitioners were limited partners in the White Rim Oil & Gas
Partnership (White Rim) in 1980-83. Petitioners deducted losses
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