- 4 -
other than the tax matters partner of Shavano filed a petition
for readjustment with the U.S. District Court for the Northern
District of California (District Court case).
On June 9, 2005, petitioner submitted to the IRS a Form
8857, Request for Innocent Spouse Relief, seeking relief from
joint and several liability on the joint return he filed for the
taxable year 1999. Petitioner requested that the full amount of
the tax due for 1999 be allocated in equal shares to him and to
Cathleen Adkison pursuant to section 6015(c). Petitioner has not
received a notice of determination from the IRS with regard to
his Form 8857.
On November 10, 2005, respondent sent a joint notice of
deficiency for 1999 to petitioner and Cathleen Adkison.
The deficiency of $5,837,482 set forth in the notice is
attributable to the following adjustments related to the
Adkisons’ participation in Shavano: (1) The disallowance of a
capital loss of $27,213,056; (2) the disallowance of a
partnership loss of $184,822; and (3) a reduction of itemized
deductions (investment interest expense) of $812,327. The notice
of deficiency includes an explanation that respondent made a
number of alternative determinations including a determination
that Shavano was a sham and/or Shavano was formed solely for the
purposes of tax avoidance.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007