Opinion
24812-12
03-04-2022
SCGC DEVELOPMENT, LLC, JEFFREY KOLB, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
Richard T. Morrison, Judge
Pending before the Court in this TEFRA partnership proceeding is respondent's December 22, 2021 motion for entry of decision. In that motion respondent states, among other things, that Jeffrey Kolb, the Tax Matters Partner for SCGC Development, LLC, and respondent had reached a settlement agreement resolving all issues in this case. Concurrently with this motion, respondent lodged a proposed decision document. No partner, other than Jeffrey Kolb, is a participating partner to this action within the meaning of Tax Court Rule 247(b). As required by Rule 248(b)(2), respondent has served a copy of the motion for entry of decision on Jeffrey Kolb, the Tax Matters Partner of SCGC Development, LLC. Tax Court Rule 248(b)(4) provides that, if any party objects to the granting of the motion for entry of decision, that party shall, within 60 days from the date on which the motion for entry of decision is filed with the Court, file a motion for leave to intervene or participate. If no such motion is filed, "then the Court may enter the proposed decision as its decision in the partnership action." The 60-day time period prescribed by Tax Court Rule 248(b)(4) expired on February 21, 2022. As of the date of this Order and Decision, no party has filed a motion for leave to intervene or participate in this case.
Upon due consideration of the foregoing, it is
ORDERED that respondent's December 22, 2021 motion for entry of decision is granted pursuant to Tax Court Rule 248(b). It is further 1
ORDERED and DECIDED that the following statement shows the adjustments to the partnership items of SCGC Development, LLC for the taxable year 2007:
Partnership Item
As Reported
As Determined
Cost of Goods Sold
$19, 892, 697.00
$18, 692, 697.00
Interest Expense
87, 500.00
$ 87, 500.00
It is determined that the penalty under I.R.C. § 6662(a) is applicable for the taxable year 2007 at the individual partner level at a rate of 10%. 2