PK Ventures, Inc. and Subsidiaries, et al. - Page 57

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          Notwithstanding this conclusion, we do not allow respondent to              
          disavow the amount allowed in the PKV&S notice of deficiency for            
          “deferred compensation” paid to Rose in 1992 (as respondent                 
          attempts to do on brief) because to do so would be to permit                
          respondent to increase the related deficiency without making a              
          timely claim for it.  See sec. 6214(a); Estate of Petschek v.               
          Commissioner, 81 T.C. 260, 271-272 (1983); see also Koufman v.              
          Commissioner, 69 T.C. 473, 475-476 (1977).                                  
               Under certain circumstances, prior services may be                     
          compensated in a later year.  Lucas v. Ox Fibre Brush Co., 281              
          U.S. 115, 119 (1930).  In such instances, however, the taxpayer             
          must establish that there was not sufficient compensation in                
          prior periods and that, in fact, the current year’s compensation            
          was to compensate for that underpayment.  Estate of Wallace v.              
          Commissioner, 95 T.C. 525, 553-554 (1990), affd. on another                 
          ground 965 F.2d 1038 (11th Cir. 1992); see also Pac. Grains,                
          Inc. v. Commissioner, supra at 606.                                         
               In support of their argument that Rose was insufficiently              
          compensated for his services to PK Ventures and its subsidiaries            
          during 1986 through 1991, petitioners claim that a deferred                 
          compensation agreement existed between Rose and those                       
          corporations during those years and that the “going concern”                
          notes included in the notes to the audited financial statements             
          for the year ended December 31, 1989, for PK Ventures, SLPC,                






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