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Petitioner is not entitled to exemption from income tax
pursuant to IRC �501, this [Court] has jurisdiction to
determine the amount of income tax to which the
organization is subject, including the imposition of
penalties. Florida Hospital Trust Fund v.
Commissioner, * * * 103 T.C. 140 (1994).
The issue in the present cases is not whether this Court has
jurisdiction over different aspects of petitioners’ tax status,
but whether we have jurisdiction over the section 6652(c)(1)
penalty. None of the above-listed instances of jurisdiction
relates to the penalty at issue.
In Henry Randolph Consulting v. Commissioner, 112 T.C. 1
(1999), the taxpayer made an argument similar to petitioners’.
In that case, the Commissioner determined that the taxpayer’s
workers were classified as employees for the purposes of Federal
employment taxes under section 7436 and assessed employment taxes
against the taxpayer. Id. at 2-3. The taxpayer filed a petition
with the Tax Court contesting the employment taxes as assessed,
and the Commissioner filed a motion to dismiss for lack of
jurisdiction. Id. at 1-3. The Tax Court is expressly given
jurisdiction to review the classification of workers as employees
under section 7436(a), but at the time the case was filed, the
Court did not have jurisdiction over employment taxes.7 See id.
at 13-14. The taxpayer argued that, on grounds of judicial
7 Sec. 7436(a) has since been amended by the Consolidated
Appropriations Act, 2001, Pub. L. 106-554, sec. 314(f), 114 Stat.
2763A-643 (2000) to confer jurisdiction to determine “the proper
amount of employment tax.”
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Last modified: May 25, 2011