Opinion
1723-17
07-13-2023
BENITO PALMARINI & BERNADETTE PALMARINI, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
David Gustafson, Judge
This is a deficiency case brought under I.R.C. section 6213(a). Petitioners Benito Palmarini and Bernadette Palmarini filed a petition seeking review of a notice of deficiency by the Internal Revenue Service ("IRS") determining deficiencies in federal income tax for the years 2013 and 2014. Trial in this case was held on October 22, 2019, in Philadelphia, Pennsylvania, and the Court issued its opinion as T.C. Memo. 2022-119, on December 7, 2022. Two days later, we issued our Order (Doc. 72) directing the parties to submit proposed computations under Tax Court Rule 155. We quoted Rule 155(c) ("Limit on Argument"), which provides:
Any argument under this Rule will be confined strictly to consideration of the correct computation of the amount to be included in the decision resulting from the findings and conclusions made by the Court, and no argument will be heard upon or consideration given to the issues or matters disposed of by the Court's findings and conclusions or to any new issues. This Rule is not to be regarded as affording an opportunity for retrial or reconsideration.
The parties thereafter submitted their respective proposed computations under Rule 155 (Docs. 73, 77). We noted in our Order (Doc. 78) that petitioners' initial submission did not comply with Rule 155, and we granted petitioners an extension to file a proposed computation in compliance with Rule 155 or to submit a response to the Commissioner's proposed computation. In doing so we once again reminded petitioners about the "Limit on Argument" of Rule 155(c). Petitioners thereafter filed a second proposed computation (Doc. 80) to which the Commissioner filed a response (Doc. 83). However, as the Commissioner points out in his response, petitioners' proposed computation once again fails to comply with Rule 155 because it disregards the outcomes in our opinion, see Palmarini Inc., et al., T.C. Memo. 2022-119, at *21-23, makes further argument as to those holdings in contravention of Rule 155(c), and contains no computation other than stating that the tax deficiencies are "zero dollars". Petitioners pointed out no arithmetical errors in the Commissioner's proposed computation, nor any respect in which it fails to reflect the resolution of issues as stated in our Opinion. Therefore, for the reasons stated in our orders (Docs. 72, 78) and in the Commissioner's response (Doc. 83), it is
ORDERED AND DECIDED that petitioners are liable for deficiencies in income tax and additions to tax for the years 2013 and 2014, as follows:
Year
Income tax
Addition to tax § 6662
2013
$46,400
$9,280
2014
$35,990
$7,198