- 9 - that Johnston Island was not a specified possession for purposes of the income exclusion allowed under section 931. Respondent did not assert any penalty relating thereto. A month thereafter, on December 28, 2001, petitioner mailed to respondent a personal check in the amount of $57,709, reflecting payment of the full $54,139 tax deficiency for 2000 determined by respondent, including interest. In an e-mail sent to respondent on the same day, petitioner reserved his right to file a claim for refund if the pending litigation regarding the taxability of Johnston Island wages was eventually resolved in the taxpayers’ favor. On February 26, 2002, respondent mailed to petitioner another letter relating to petitioner’s 2000 Federal income tax return in which letter respondent proposed against petitioner for 2000 a $10,828 accuracy-related penalty under section 6662(a) relating to petitioner’s claim that his $185,048 in 2000 wages constituted nontaxable income. On May 9, 2002, each of the three taxpayers in Specking v. Commissioner, supra, filed appeals of our decision therein, two to the Court of Appeals for the Tenth Circuit and one to the Court of Appeals for the Ninth Circuit. On June 4, 2002, a fifth petition was filed in this Court by a sixth Raytheon employee who worked on Johnston Island in which petition the taxability of wages earned on Johnston Island was challenged. Hautzinger v. Commissioner, docket No. 9501-02.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011