Opinion
25440-18
01-26-2022
EDWARD M. LOPEZ & JULIA MUNOZ, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
ALBERT G. LAUBER JUDGE
The Internal Revenue Service (IRS or respondent) sent petitioners a timely notice of deficiency determining for 2016 a deficiency of $58,304 and an accuracy-related penalty. On September 28, 2021, the parties executed and filed a stipulation of settled issues that resolved all issues in the case. As part of that stipulation respondent conceded the accuracy-related penalty.
Respondent's counsel secured tax computations based on the parties' agreement and prepared draft decision documents reflecting a reduced deficiency of $10,613 and no accuracy-related penalty. Respondent apparently sent the draft decision documents either to petitioners' tax return preparer or to an attorney who had made a limited entry of appearance for petitioners at a September 14, 2020, calendar call of the case, but who had subsequently withdrawn. No executed decision documents were returned to respondent's counsel.
Respondent then filed a Motion for Entry of Decision, requesting that we enter a decision consistently with the parties' agreement. Respondent attached to his Motion a copy of the proposed decision document and served these documents on petitioners at their address of record and on their tax return preparer. On December 10, 2021, we ordered petitioners to file, by January 7, 2022, a response to respondent's Motion for Entry of Decision. We advised petitioners that, if they did not respond, the Court would likely grant respondent's Motion and enter the decision attached to it. Petitioners did not respond by January 7 or subsequently. Upon due consideration, it is
ORDERED that respondent's Motion for Entry of Decision, filed December 1, 2021, is granted. It is further
ORDERED AND DECIDED that there is a deficiency in income tax due from petitioners for the taxable year 2016 in the amount of $10,613.00; and
That there is no penalty due from petitioners for the taxable year 2016, under the provisions of I.R.C. § 6662(a).