Opinion
5313-16
04-03-2024
SCOTT A. BLUM & AUDREY R. BLUM, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
On March 8, 2024, petitioner filed a Motion for Partial Summary Judgment that a prior closing agreement between the parties and a decision document filed in docket No. 2679-06 resolved petitioners' tax for the years at issue in this case and that petitioners have paid their tax for the years at issue in full. On April 1, 2024, respondent filed a Response to petitioners' Motion.
Unless otherwise indicated, all statutory references are to the Internal Revenue Code (Code), Title 26 U.S.C, in effect at all relevant times, all regulation references are to the Code of Federal Regulations, Title 26 (Treas. Reg.), in effect at all relevant times, and all Rule references are to the Tax Court Rules of Practice and Procedure.
On March 20, 2024, respondent filed a Cross-Motion for Partial Summary Judgment that (1) he properly mailed a Notice of Beginning Administrative Proceeding (NBAP) and Notice of Final Partnership Administrative Adjustment (FPAA) to petitioners for Democrat Strategic Investment Fund, LLC, in accordance with section 6662(a); (2) the adjustments at issue in this case for 1999 are affected-item adjustments that flowed through from the related TEFRA partnership proceeding and did not convert from partnership to nonpartnership items; and (3) petitioners are not entitled to deduct the TEFRA flow-through loss.
On March 21, 2024, petitioners filed a Cross-Motion for Partial Summary Judgment that respondent failed to mail a copy of the FPAA to Mr. Blum as a notice partner.
We find that there are genuine disputes of material fact as to the issues set forth in the parties' Motions for Partial Summary Judgment. Accordingly, we will deny each motion without prejudice to pursuing the arguments at trial and in post- trial briefs. See Rule 121(b) (providing that the Court may grant summary judgment when there is no genuine dispute as to any material fact and a decision may be rendered as a matter of law); see also Sundstrand Corp. v. Commissioner, 98 T.C. 518, 520 (1992), aff'd, 17 F.3d 965 (7th Cir. 1994).
Upon due consideration, it is
ORDERED that petitioners' Motion for Partial Summary Judgment, filed March 8, 2024, relating to whether the closing agreement or decision document resolved any issue in this case or petitioners' tax for the years at issue is denied. It is further
ORDERED that respondent's Cross-Motion for Partial Summary Judgment, filed March 20, 2024, regarding the proper mailing of the NBAP and FPAA, the conversion of partnership items to nonpartnership items, and petitioners' entitlement to loss deductions is denied. It is further
ORDERED that petitioners' Cross-Motion for Partial Summary Judgment, filed March 21, 2024, regarding the proper mailing of a copy of the FPAA to Mr. Blum as a notice partner is denied.
Joseph Robert Goeke, Judge.