K & M La Botica Pharmacy, Incorporated, Et Al. - Page 8

                                        - 8 -                                         
          abandoned this argument.  See Mendes v. Commissioner, 121 T.C. at           
          312-313.                                                                    
               Further, even though Ahmed now argues that he should not be            
          liable for self-employment taxes, on the initial computations               
          that Ahmed submitted to the Court, Ahmed himself calculated self-           
          employment taxes on the collapsed income.                                   

          Crediting of Nominee Payments for Purposes of Determining the               
          Penalty and Additions to Tax for 1997 and 1998                              
               In calculating Ahmed’s 1997 and 1998 penalty and additions             
          to tax, neither party in the initial Rule 155 computations                  
          credited Ahmed for the nominee corporations’ 1997 and 1998 income           
          tax payments.                                                               
               We conclude that because Ahmed is being charged with the               
          nominee corporations’ income and expenses, in calculating Ahmed’s           
          1997 and 1998 penalty and additions to tax, it is appropriate to            
          credit Ahmed individually with the amounts paid by the nominee              
          corporations as Federal income taxes for each year.  Ahmed is to            
          be so credited.5                                                            






               5  In calculating Ahmed’s 1997 sec. 6651(a)(1) and 1998 sec.           
          6651(f) additions to tax, Ahmed is to be credited only with those           
          payments made by the nominee corporations prior to the due dates            
          of Ahmed’s respective Federal income tax returns.  See sec.                 
          6651(b)(1).                                                                 





Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011