-20-
Estate of Robert W. Lisle, Deceased, Thomas W. Lisle and Amy L.
Albrecht, Independent Co-executors, and Estate of Donna M. Lisle,
Deceased, Thomas W. Lisle and Amy L. Albrecht, Independent Co-
Executors
Additions to Tax Penalty
Year Deficiency Sec. 6653 Sec. 6661 Sec. 6662
1984 $827,955 $41,397.75 $206,988.75 --
1987 195,498 9,774.90 48,874.50 --
1988 109,048 5,452.00 27,262.00 --
1989 109,049 -- -- $21,810
Respondent determined in the notices of deficiency or
asserted in amended pleadings that the underpayments in tax were
subject to increased interest under section 6621(c), formerly
section 6621(d),11 as follows: Burton W. and Naomi R. Kanter for
the taxable years 1979,12 1980, 1982 to 1984, 1986, and 1987;
Claude M. and Mary B. Ballard for the taxable years 1975 to 1982,
1984, 1987, and 1988; and the Estates of Robert W. Lisle,
11 Sec. 6621(d)(1) was added by the Deficit Reduction Act
of 1984, Pub. L. 98-369, sec. 144(a), 98 Stat. 682, and provides
for interest of 120 percent of the adjusted interest rate due on
any substantial underpayment of tax attributable to tax-motivated
transactions. The increased interest is effective for interest
accruing after Dec. 31, 1984. In the Tax Reform Act of 1986,
Pub. L. 99-514, sec. 1511(c), 100 Stat. 2744, sec. 6621(d)(1) was
redesignated sec. 6621(c)(1).
12 With respect to the Kanter case at docket No. 3456-88,
the applicability of sec. 6621(c) was asserted by respondent in
an amendment to answer and applies only to an underpayment in tax
of $206,239.63 attributable to a loss of $311,478 claimed by
petitioners from Immunological Research Corp., an S corporation,
which respondent disallowed. In a second amendment to answer,
respondent asserted the entire underpayment in tax for 1979 was
subject to increased interest under sec. 6621(c). On brief,
respondent concedes the underpayment attributable to the
disallowed loss from Immunological Research Corp. is not subject
to increased interest under sec. 6621(c) on the basis of Estate
of Cook v. Commissioner, T.C. Memo. 1993-581.
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