Opinion
14500-19
07-20-2023
ROBERT T. ERVIN, IV & SANDRA LANDRY ERVIN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Joseph Robert Goeke Judge
Pending before the Court is respondent's Motion to Dismiss and to Strike Partnership Item, filed July 11, 2023.
On September 14, 2022, the parties filed a Stipulation of Settled Issues. In paragraph 27 it states: "If the claimed $406,131.00 non-cash charitable contribution in this matter is derived from Silver Moss' non-cash charitable contribution, and that non cash charitable contribution is deemed to be a TEFRA partnership item for Silver Moss' 2017 tax year, then the $406,131.00 non-cash charitable contribution in this matter will be allowed in this case. However, the parties have not yet been able to confirm that the $406,131.00 non-cash charitable contribution in this matter is derived from Silver Moss' non-cash charitable contribution, nor that it is a TEFRA partnership item for Silver Moss' 2017 tax year." In paragraph 28 it states: "The parties agree that petitioners are liable for the accuracy-related penalty under Section 6662(a), but the parties also agree that the accuracy-related penalty will apply only to the portion of the determined deficiency in income tax attributable to the disallowed $46,750.00 of Ervin LLC's $333,847.00 rental deduction." These excerpts and the motion raise several questions. We understand that respondent concedes that the non-cash charitable contribution issue is a partnership item that cannot be adjusted at the partner level as petitioners asserted in their petition. If the parties intend to treat the adjustment in question as a partnership level adjustment subject to the decision in Silver Moss Properties, LLC v. Commissioner, docket No. 10646-21, they should state that specifically to clarify the stipulation of settlement. Also, do the parties intend to concede the penalty if there is a subsequent partnership adjustment? Accordingly, it is
ORDERED that the parties are directed on or before August 18, 2023, to file with the Court a status report addressing the questions raised above.