Opinion
27059-14
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 a computation of the tax liability for 2009 on the basis of the preparation of a tax return that recast their original return and/or pro forma return that was prepared during the course of litigation. The computation did not include the amount of the deficiency or agreed-to penalties. Petitioners have not demonstrated that their recast-return approach produces a computation that is in accordance with the Stipulations of Settled Issues.
Respondent's computation does not make this error. His computation is in accordance with the Stipulations of Settled Issues, and accordingly, we will enter a Decision that reflects respondent's computation.
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 there is a deficiency in income tax due from the petitioners for the taxable year 2009 in the amount of $1,046,743.00;
That there is an addition to tax due from petitioners for the taxable year 2009 in the amount of $261,683.50, under the provisions of I.R.C. § 6651(a)(1); and
That there is no penalty due from petitioners for the taxable year 2009, under the provisions of I.R.C. § 6662(a).