Opinion
20763-17 22545-17
07-03-2024
MIDWEST MEDICAL AESTHETICS CENTER, ET AL., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Elizabeth Crewson Paris Judge
The Court issued T.C. Memo. 2024-32 in these consolidated cases on March 25, 2024.
On June 21, 2024, docket entry 96, in Docket No. 20763-17, respondent filed a Computation for Entry of Decision. Also on June 21, 2024, docket entry 98, in Docket No. 22545-17, respondent filed a Computation for Entry of Decision.
It appears that the Computation for Entry of Decision in Docket No. 22545-17, filed June 21, 2024, docket entry 98, does not comply with the Court's March 25, 2024, Opinion.
The Court found that Midwest Medical Aesthetics Center (Midwest Medical) did not have income from credit card rewards of $3,280.00, $5,650.00, $3,642.24, and $1,500.00 in tax years 2006, 2007, 2008, and 2010, respectively. In turn, the Court found without income from Midwest Medical, Ms. Stegman did not have deemed distributions from Midwest Medical for credit card rewards of $3,280.00, $5,650.00, $3,642.24, and $1,500.00 in tax years 2006, 2007, 2008, and 2010, respectively. It is not clear that respondent's computation reduces Ms. Stegman's deemed distributions in the correct amounts for the correct tax years. Additionally, respondent does not address whether reducing Ms. Stegman's deemed distribution income by $3,642.24 in tax year 2008 affects the calculation of her long-term capital gains from Midwest Medical.
The Court also found that Ms. Stegman received $9,950 of interest income in tax year 2006. Respondent included zero interest income in 2006 and $9,950 interest income in 2007. The current computation does not include an explanation as to the deviation in the year of recognition. And finally, it does not appear that respondent calculated Ms. Stegman's tax year 2008 long-term capital gain from the sale of property in accordance with the Court's Opinion.
After due consideration, it is
ORDERED that, on or before July 24, 2024, respondent shall file a status report providing an explanation of how respondent accounted for the following in the Computation for Entry of Decision filed June 21, 2024, docket entry 98, in Docket No. 22545-17: (1) the Court's finding that Ms. Stegman did not have deemed distributions from Midwest Medical for credit card rewards received in each of the years at issue, (2) the Court's finding that Ms. Stegman had $9,950 in interest income for tax year 2006, and (3) the Court's finding regarding Ms. Stegman's tax year 2008 long-term capital gains and losses, with respect to both long-term gain from the sale of property and long-term gain from Midwest Medical. In the status report respondent shall also advise the Court if, based on the explanation provided, it is necessary for respondent to amend the Computation for Entry of Decision. It is further
ORDERED that, on or before August 2, 2024, if necessary, respondent shall file an amended Computation for Entry of Decision in Docket No. 22545-17.