Opinion
11921-18
10-27-2021
Toufan Razi Petitioner v. Commissioner of Internal Revenue Respondent
ORDER AND DECISION
JOSEPH W. NEGA, JUDGE
This case was previously calendared for trial at the Court's April 20, 2020, San Francisco, California, trial session. By Order dated March 17, 2020, that trial session was cancelled due to concerns relating to coronavirus (COVID-19), and this case was assigned to the undersigned Judge.
On December 3, 2019, the parties filed a Stipulation of Settled Issues resolving all issues in this case except for one outstanding issue. On May 20, 2021, respondent filed a Status Report informing the Court that respondent received from petitioner's representative an amended return that addressed the outstanding issue in this case and that the parties were discussing computations. By Order dated June 7, 2021, the Court directed that, on or before July 20, 2021, the parties shall file (1) a stipulated decision or (2) a joint status report (or separate reports if this is not possible) of the then-present status of this case.
On July 20, 2021, respondent filed a Motion for Entry of Decision, requesting that the Court enter a decision in this case in accordance with the attached proposed decision document, which reflects the agreements memorialized in the Stipulation of Settled Issues filed by the parties on December 3, 2019. In the motion, respondent states that, on December 3, 2019, the parties filed a Stipulation of Settled Issues resolving all non-computational issues proposed in the notice of deficiency issued on March 22, 2018, other than adjustments to petitioner's share of flow-through income from petitioner's S corporation Merced Surgery Center, Inc. for the 2015 tax year. Respondent further states that he concedes the outstanding issue in this case involving proposed adjustments to petitioner's corporation Merced Surgery Center, Inc. for the 2015 tax year. Accordingly, respondent represents that there is nothing further for the Court to adjudicate in this matter as all other adjustments in this case were stipulated to in the Stipulation of Settled Issues or were computational. Respondent attached to his motion, as Exhibit A, a proposed decision document reflecting the parties stipulations and computational adjustments. Respondent sent the proposed decision document to petitioner through his power of attorney, however, petitioner's power of attorney claimed that certain adjustments were agreed to at the examination level. Respondent represents that he has been unable to confirm petitioner's views on this motion, however, due to petitioner's ongoing disinclination to execute the decision document, he believes that petitioner objects to the granting of this motion.
By Order dated July 28, 2021, the Court directed petitioner to file a response to respondent's Motion for Entry of Decision on or before August 30, 2021, and warned that failure to respond as required by this Order may be deemed consent to the relief sought in the motion. On August 24, 2021, the Court received returned mail for the Court's Order issued July 28, 2021, on petitioner at his address of record. Affixed to that returned mail was a label providing the new forwarding address for petitioner. By Order dated September 20, 2021, the Court ordered that petitioner's address is changed in the Court's records to the address provided on the returned mail and directed the Clerk of the Court to serve copies of this Order and the Court's Order issued July 28, 2021, on petitioner at his address of record. As of the date of this Order, no response has been received by or on behalf of petitioner.
Upon due consideration of the foregoing, and in accordance with the proposed decision document attached, as Exhibit A, to respondent's Motion for Entry of Decision, it is
ORDERED that respondent's Motion for Entry of Decision filed July 20, 2021, is granted. It is further
ORDERED AND DECIDED that there are deficiencies in Federal income tax due from petitioner for the taxable years 2014 and 2015 in the amounts of $484,630 and $405,783 respectively. It is further
ORDERED AND DECIDED that there are no penalties due from petitioner for the taxable years 2014 and 2015, under the provisions of Internal Revenue Code, section 6662(a).