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Sue Taylor, pro se.
Cameron M. McKesson, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
WHERRY, Judge: Respondent determined Federal income tax
deficiencies in the amounts of $49,525 and $39,717 together with
penalties pursuant to section 6662(a) in the amounts of $9,905
and $7,943.40 for taxable years 1999 and 2000, respectively.1
After concessions,2 the issues for decision are:
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code of 1986, as amended and in effect for
the years in issue, and all Rule references are to the Tax Court
Rules of Practice and Procedure.
2 Respondent conceded petitioner’s allegedly unreported
income derived from National Land Bank LLC (National Land Bank)
in the amount of $43,862 for 1999 because respondent determined
that a tax return was filed for National Land Bank. However,
there was a mathematical subtraction error on National Land
Bank’s Form 1065, U.S. Partnership Return of Income, for 1999.
Instead of reporting $10,308 in income, National Land Bank
reported a $10,308 loss. Petitioner’s Form 1040, U.S. Individual
Income Tax Return, Schedule E, Supplemental Income and Loss,
consistent with the erroneous Form 1065, Schedule K-1 (Form
1065), Partner’s Share of Income, Credits, Deductions, Etc.,
reported her 50-percent alleged distributive share loss of
$5,154. The notice of deficiency for 1999 eliminated the $5,154
loss but, because of the claimed $43,862 income adjustment, did
not contain an adjustment to properly reflect her mathematically
corrected share of reported National Land Bank income.
Furthermore, as discussed infra in text, the Court finds that
petitioner is taxable in 1999 and 2000 on the income of Speck
Trust, the other 50-percent member of National Land Bank.
Therefore, petitioner has a total of $10,308 (her 50-percent
$5,154 share plus Speck Trust’s 50-percent $5,154 share) of
additional income for 1999 from National Land Bank in lieu of the
conceded $43,862.
(continued...)
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