Opinion
34214-21S
08-15-2022
JAMES WELSH & PATRICIA WELSH, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
Kathleen Kerrigan, Chief Judge
By Notice of Deficiency dated August 23, 2021, respondent determined a deficiency of $5,723.00 and an I.R.C. section 6662(a) penalty of $1,145.00 in petitioners' federal income tax for the 2019 taxable year. On November 1, 2021, petitioners timely filed a Petition for redetermination.
Pending before the Court is petitioners' Motion for Entry of Decision, filed December 29, 2021. On April 12, 2022, respondent filed a Response, stating that he has no objection to the granting of petitioners' Motion and the entry of a decision in accordance with the settlement of the parties, as reflected in the IRS Notice CP2000 issued to petitioners on November 1, 2021. A partial copy of that Notice is attached to petitioners' Motion, and a complete copy is attached to respondent's Response.
On August 9, 2022, respondent supplemented his Response to clarify that on November 22, 2021, petitioners made an advance payment of tax in the amount of $1,495.00 with respect to their federal income tax liability for the 2019 taxable year. As previously noted in the Court's Order served July 21, 2022, that $1,495.00 payment, which the parties have now agreed on the record has been made, is equal to the amount due stated in the aforementioned IRS Notice CP2000 (i.e., a deficiency of $1,196.00, an I.R.C. section 6662(a) penalty of $239.00, and interest of $60.00).
Upon due consideration and for cause, it is
ORDERED that respondent's First Supplement to Motion for Entry of Decision, filed August 9, 2022, is recharacterized as respondent's First Supplement to Response to Motion for Entry of Decision. It is further
ORDERED that petitioners' Motion for Entry of Decision is granted. Taking into account the basis for settlement reached between the parties, as reflected in the Court's record in the above-docketed matter, it is further
ORDERED and DECIDED that there is a deficiency in federal income tax due from petitioners in the amount of $1,196.00 for the taxable year 2019; and
That there is a penalty due from petitioners under I.R.C. section 6662(a) in the amount of $239.00 for the taxable year 2019.
As noted above, the parties have agreed on the record that the foregoing deficiency and penalty amounts have been computed without giving consideration to the $1,495.00 advance payment of tax that the parties agree was made by petitioners on November 22, 2021.