Beatrice Goblirsch - Page 5

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               Petitioner sold her residence on April 18, 1995, and has               
          lived in Tokyo, Japan, continuously since April 5, 1997.                    
          Petitioner indicated on her Form 2119 that she intended to                  
          replace her home within the replacement period.  The replacement            
          period was suspended for the maximum of 4 years because                     
          petitioner had a tax home outside the United States during that             
          time.  The replacement period thus ended on April 18, 1999.                 
          Petitioner had not replaced her home as of the date of trial, May           
          17, 2004.  Therefore, petitioner did not replace her residence              
          within the replacement period and is liable for the capital gains           
          tax on the 1995 residence sale as calculated by Mr. Herrera and             
          paid on May 12, 2000.                                                       
               Petitioner alleges that an employee of respondent’s in                 
          Tokyo, Japan, gave her incorrect advice about the termination               
          date of the replacement period related to the 1995 residence                
          sale.  Petitioner testified that she consulted the employee                 
          “probably around June 15 [1999].”  We note that according to                
          petitioner’s testimony, her contact with the employee was 2                 
          months after the expiration of the replacement period.                      
               Interest Abatement                                                     
               Section 6404(e)(1) provides, in pertinent part, that the               
          Commissioner may abate the assessment of interest on any                    
          deficiency attributable to any error or delay by an officer or              
          employee of the Internal Revenue Service (IRS) (acting in his               






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