- 2 - and adopts the opinion of the Special Trial Judge, which is set forth below. OPINION OF THE SPECIAL TRIAL JUDGE ARMEN, Special Trial Judge: This matter is before the Court on respondent’s Motion For Summary Judgment, filed pursuant to Rule 121. As explained in detail below, we shall grant respondent’s motion. Background In February 2001, petitioners filed a joint Form 1040, U.S. Individual Income Tax Return, for the taxable year 2000 on which they reported wages of $51,804, total tax of $5,121, and tax withholding of $5,346. Petitioners’ tax return included two Forms 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains. The Forms 2439 stated that petitioners were shareholders of a regulated investment company (RIC) or real estate investment trust (REIT).2 The Forms 2439 identified the investment entity as “Black Investment, Tax Dept. of Treasury” and listed the amount of tax paid by the entity on petitioners’ 2 Sec. 852(b)(1) and (3)(A) provides that tax will be imposed on the taxable income and capital gains of a regulated investment company (RIC). Sec. 852(b)(3)(D)(i) provides that a RIC’s shareholder “shall include, in computing his long-term capital gains in his return * * * such amount as the * * * [RIC] shall designate”. Sec. 852(b)(3)(D)(ii) provides that such shareholder “shall be deemed to have paid * * * the tax imposed” under sec. 852(b)(3)(A), and the shareholder shall be allowed a “credit or refund, as the case may be, for the tax so deemed to have been paid by him.”Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011