- 7 -
to the Form 1120S, inter alia, was a Schedule K-1 for each
shareholder. Petitioner’s Schedule K-1 reported his pro rata
share as follows: Ordinary income of $27,489; charitable
contributions of $2,499; investment interest income of $20; and
depreciation of $1,690 (petitioner’s 2000 Schedule K-1).
Petitioner timely filed a Form 1040EZ, Income Tax Return for
Single and Joint Filers With No Dependents, for 2000. Petitioner
did not report any of the items reported on petitioner’s 2000
Schedule K-1.
In the notice of deficiency, respondent determined that
petitioner failed to report shareholder interest income of $20
and shareholder ordinary income of $27,489. Respondent further
determined that petitioner is liable for the accuracy-related
penalty under section 6662(a) for a substantial understatement of
tax.
Petitioner timely filed a petition with the Court disputing
the determined deficiency as well as the accuracy-related
penalty. Paragraph 4 of the petition states as follows:
The Notice of Deficiency was calculated based upon
information reported on IRS Form 1120S filed on behalf
of Union Machine, Inc., EIN 91-1688285, for the year
ending 2000. The Form 1120S erroneously reported that
I was a shareholder of Union Machine, Inc. I do not
believe that I was a shareholder of Union Machine for
the year ending 2000 (or for any part of the year
ending 2000). The Schedule K-1, which the IRS has
relied upon to determine the Notice of Deficiency,
should not have been issued in my name. Accordingly,
there is no basis for the Notice of Deficiency.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011