Gary R. Fears - Page 4

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          $4,146,903 net operating loss, $156,192 loss relating to legal              
          fees, and $227 Schedule C, Profit or Loss From Business, loss               
          relating to GFG.  Respondent also determined that petitioner was            
          liable for an accuracy-related penalty and a gross valuation                
          misstatement penalty pursuant to section 6662(a) and (h),                   
               On November 14, 2005, petitioner, while residing in                    
          Collinsville, Illinois, filed his petition with the Court.  On              
          November 23, 2005, respondent assessed the penalties against                
          petitioner relating to 2001.  On January 12, 2007, the Court                
          filed respondent’s motion to dismiss for lack of jurisdiction and           
          to strike relating to the penalties.  On February 12, 2007, the             
          Court filed petitioner’s objection to respondent’s motion to                
               Respondent contends that the Court lacks jurisdiction to               
          determine whether petitioner is liable for the section 6662(a)              
          and (h) penalties.  The Tax Court is a Court of limited                     
          jurisdiction, and we may exercise jurisdiction only to the extent           
          authorized by Congress.  Naftel v. Commissioner, 85 T.C. 527, 529           
          (1985).  Section 6230(a)(2)(A)(i) provides that deficiency                  
          proceedings apply to affected items which require partner level             
          determinations other than penalties that relate to adjustments to           
          partnership items.  In the Taxpayer Relief Act of 1997, Pub. L.             

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