Robert Newstat - Page 2

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                                 MEMORANDUM OPINION                                   

               WHERRY, Judge:  This case was filed in response to a Notice            
          of Determination Concerning Collection Action(s) Under Section              
          6320 and/or 6330.1  The issue for decision is whether respondent            
          may proceed with collection as so determined.                               
                                     Background                                       
               This case was submitted fully stipulated pursuant to Rule              
          122.  The stipulations of the parties, with accompanying                    
          exhibits, are incorporated herein by this reference.                        
               Petitioner requested and obtained extensions of time until             
          October 15, 1986, to file his 1985 Form 1040, U.S. Individual               
          Income Tax Return.  On that date, petitioner filed his 1985                 
          return reporting total tax of $187,911; total payments, through             
          withholding, of $66,747; and an amount owed of $127,151.2  No               
          payment was submitted with the return.  At the time, petitioner             
          was involved in a pending bankruptcy, which he had filed in May             
          or June of 1986.                                                            



               1 Unless otherwise indicated, section references are to the            
          Internal Revenue Code of 1986, as amended, and Rule references              
          are to the Tax Court Rules of Practice and Procedure.                       
               2 The parties have stipulated that the amount owed should              
          have been $121,164, calculated by crediting $66,747 against the             
          reported liability of $187,911.  The difference resulted from               
          petitioner’s inclusion in the amount owed shown on his return of            
          a $5,987 “penalty” computed by petitioner on the Form 2210,                 
          Underpayment of Estimated Tax by Individuals, accompanying his              
          1985 return.                                                                




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