Opinion
17057-11
08-19-2022
JAMES P. CONNELLY & CHRISTINE K. CONNELLY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
Joseph Robert Goeke Judge
On May 27, 2022, and August 15, 2022, respondent and petitioners, respectively, filed a Motion for Entry of Decision, under Tax Court Rule 50.
On November 3, 2016, and October 28, 2019, the parties filed Stipulations of Settled Issues, which resolved all issues. This case is a part of a consolidated group of cases that were calendared for hearing on the parties' computations on the special session in Chicago, Illinois, on August 12, 2022, and were stricken from the calendar upon our granting of petitioners' Motion for Extension of Time filed July 6, 2022. Petitioners waived the opportunity for a hearing in their Motion for Extension of Time. See T.C. Rule 155(b).
Petitioners have provided computations of their tax liability for each year at issue on the basis of the preparation of tax returns that recast their original returns and/or pro forma returns that were prepared during the course of litigation. The computations did not include the amount of the deficiencies or agreed-to penalties. Petitioners have not demonstrated that their recast-return approach produces computations that are in accordance with the Stipulations of Settled Issues.
Respondent's computations do not make this error. His computations are in accordance with the Stipulations of Settled Issues, and accordingly, we will enter a Decision that reflects respondent's computations.
Upon due consideration, it is
ORDERED that petitioners' Motion for Entry of Decision, filed August 15, 2022, is denied. It is further
ORDERED that respondent's Motion for Entry of Decision, filed May 27, 2022, is granted. It is further
ORDERED and DECIDED that petitioners are liable for deficiencies and penalties for the years at issue as follows:
Year
Deficiency
I.R.C. § 6651(a)(1) addition to tax
I.R.C.§6662(a) penalty
2006
$365,478.00
$91,369.50
$73,095.60
2007
$1,237,953.22
$116,692.54
$247,590.64
2008
$720,080.00
$144,016.00
$144,016.00