- 2 - respondent determined the following deficiencies in petitioners’ Federal income tax: Deficiency Petitioners 1998 1999 Denis H. Dieker, Jr., and Shirley J. Dieker $3,911 $117,495 John R. Pierce and Sandee Pierce 3,911 117,494 Steven A. Nienke and Vickie L. Nienke 32,921 988,914 After concessions,2 the sole issue for our consideration is whether a liability claimed through petitioners’ S corporation met the requirements of the “all-events test” including the economic performance principles of section 461(h).3 Background These cases were submitted fully stipulated under Rule 122, and the stipulated facts are so found. All petitioners resided in Kansas at the time their respective petitions were filed. Collectively, petitioners own National Contractors, Inc. (National), an S corporation that operates a construction business in Wichita, Kansas. At all pertinent times, National was owned as follows: 2Petitioners concede the deficiencies for the taxable year 1998 and certain other adjustments to income for the taxable year 1999. 3Unless otherwise indicated, all section references are to the Internal Revenue Code and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011