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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),
respectively.
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
dismiss.
Discussion
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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Last modified: November 10, 2007