T.C. Sum m ary Opi ni on 20 16 -5 4

UNITED STAT ES TAX COURT

DONALD NATHANIELCOOPER, JR ., Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 25 08 1- 14 S. Fi le d S ep te m be r 7, 2 01 6.

Don al d Nat ha ni el Co op er, J r., pro se. Sco ttA. Hov ey , forres po nd en t.

SUMM ARY OPINION CHIECHI, J ud ge : Th is cas e was he ardpu rs ua ntto th e p ro vi si on s o f se ct io n 74 63 of t he Int ern al Rev enue Co de ineffec t wh enth e p et it io n was fil ed . Pur su 1

Herei na fte r, al l s ect io n re fere nc es are t o the Int ern al Rev enue Co de in 1 effe ctforth e y ear a t i ss ue .- 2 -

an t t o s ect io n 7 46 3( b) , th e d eci si on to be en te redis no t re vi ewab le by any ot he r co urt, an d t hi s o pi ni on sh al l n otbe tre at edas p rece de ntforan y ot he r cas e. Pet it io ne r res id edinMarylan d a t the ti m e h e fi le d t he pe ti ti on . Res po nd en t i ss ue d ano ti ce o f de fic ie nc y (20 11 no ti ce) t o p et it io ne r fo r hi s ta xabl e y ear 2 01 1. Inth atno ti ce, res po nd en t d et erm in eda de fic ie nc y in , andan accu racy-rela te d p en al ty und er s ect io n 6 66 2( a) o n, p et it io ne r’s Fed eral in co m e ta x (ta x) for hi s t ax ab le y ear 2 01 1 o f $6 ,26 2 and$1 ,25 2.4 0, re sp ect iv el y . Res po nd en t ba se d t ho se de fic ie nc y

an d p en al ty det erm in at io ns on res po nd en t’s d et erm in at io ns in th e 2 01 1 n ot ic e, in te r al ia , to di sa ll ow p et it io ne r’s cl ai m edali m on y de du ct io n o f $2 4,5 67 an d t o i m

po se anaccu racy-rela te d p en al ty und er s ect io n 6 66 2( a). 2 So m e ti m e aft er p et it io ne r fi le d t he pe ti ti on an d b efo re h e h ada te le ph on e co nf eren ce wi th a rep res en ta ti ve (App eal s o ffi cer) of t he Int ern al Rev enue Servi ce’s (IR S) Ap pe al s Off ic e (Ap pe al s Off

ic e) ar ou ndFeb ru ary 10 , 20 15 , th e IRS erro ne ou sl y

ass es se d (2 01 1 e rro ne ou s as se ss m en t) t he de fic ie nc y intax an d t he accu racy-rela te d p en al ty und er s ect io n 6 66 2( a) tha t re sp on de ntha d d et erm in edin th e 2 01 1 n ot ic e as well as i nt eres t the reo n fo r hi s t ax ab le y ear 2 01 1. Be cau se of The on ly oth er d et erm in at io n t ha t re sp on de ntm ad e in th e 2 01 1 n ot ic e is a 2 co rrel at iv e o r co m

pu ta ti on al de te rm in at io n t ha t re sp on de ntm ad e to so -cal le d ex ces s m is cel la ne ou s ex pe ns es th atpe ti ti on er cl ai m edinSch edul e A, Ite m iz ed Deduc ti on s. Th atde te rm in at io n wi ll be res ol ve d b y ou r res ol ut io n o f th e is su e pr es en te d.- 3 -

th e 2 01 1 e rro ne ou s as se ss m en t, the IRS erro ne ou sl y in fo rm edpe ti ti on er i n alet te r da te d Dec em

be r 1, 2 01 4, tha t the to ta l am ou ntdu e whi chhe owedforhi s t ax ab le y ear 2 01 1 was $8 ,13 0.8 4. The reaf te r, aro un d F eb ru ary 10 , 20 15 , pet it io ne r ha d atel ep ho ne co nf eren ce with t he App eal s o ffi cer, i n wh ic h p et it io ne r co nc ed edth athe is no t en ti tl edto th e al im on y de du ct io n t ha t h e h adcla im edforhi s t ax ab le y ear 2 01 1. Duri ng th at 3 co nf eren ce, the App eal s o ffi cer i nf orm edpe ti ti on er tha t i n app ro xi m at el y two to th ree wee ks th e IRS wou ldsen d h im cert ai n d oc um en ts th atwere t o re fle ctth e ag reem en t tha t p et it io ne r an d t he App eal s Off ic e h adreac he d wi th res pe ctto hi s ta xabl e y ear 2 01 1. At s om e ti m e b etweenDecem be r 1, 2 01 4, an d F eb ru ary 23 , 20 15 , th e IRS be cam e aware of i ts 20 11 erro ne ou s as se ss m en t an d aba te d i t (aba te m en t), e xc ep t fo r a d e m in im is po rti on , i.e., $ 11 .03 , th atth e IRS erro ne ou sl y di d n otab at e (unaba te d 2 01 1 e rro ne ou s as se ss m en t). Th erea fte r, th e IRS in fo rm edpe ti ti on er i n a le tt er d at edFeb ru ary 23 , 20 15 , th atth e am ou ntdu e whi chhe owedforhi s ta xabl e y ear 2 01 1 was $1 1.0 3.

Pet it io ne r do es no t d is pu te he re tha t h e is no t en ti tl edto th e al im on y 3 de du ct io n t ha t h e h adcla im edfor hi s t ax ab le y ear 2 01 1. Se e supr a n ot e 2 .- 4 -

Altho ug h h is po si ti on is no t al to ge th er cl ear, as we un de rs ta ndpe ti ti on er’s po si ti on , he b el ie ve s tha t, ex cep t fo r th e unaba te d 2 01 1 e rro ne ou s as se ss m en t o f $1 1.0 3, re sp on de ntco nc ed edth e d efi ci en cy an d t he accu racy-rela te d p en al ty de te rm in edinth e 2 01 1 n ot ic e. Insupp ort o f hi s p os it io n, p et it io ne r ap pe ars to be arg ui ng th atth e IRS ’ 20 11 erro ne ou s as se ss m en t an d i ts subs eque ntab at em en t o f al l b ut$1 1.0 3 o f th aterro ne ou s as se ss m en t, as setforth inth e IRS ’ le tt ers da te d Decem be r 1, 2 01 4, an d F eb ru ary 23 , 20 15 , res pe ct iv el y , con fu se d h im an d l edhi m to be li ev e th at , exc ep t fo r $1 1.0 3, re sp on de ntha d c on ced edth e d efi ci en cy an d t he accu racy-rela te d p en al ty det erm in edinth e 2 01 1 n ot ic e. Co ns eque nt ly, pe ti ti on er ap pe ars to m ai nt ai n t ha t the on ly am ou ntdu e whi chhe owes forhi s t ax ab le y ear 20 11 is $1 1.0 3, the am ou ntsh own du e in th e IRS ’ le tt er d at edFeb ru ary 23 , 20 15 . W e und ers ta ndan d app reci at e p et it io ne r’s co nf us io n wh en , sh ortl y

aft er h e ha d h ada te le ph on e co nf eren ce wi th th e App eal s o ffi cer, h e rec ei ve d t he IRS’ le tt er d at edFeb ru ary 23 , 20 15 , inwhi chth e IRS in fo rm edhi m th atth e am ou ntdu e whi chhe owedforhi s t ax ab le y ear 2 01 1 was $1 1.0 3. No ne th el es s, the reco rd be fo re u s l eav es no do ub t tha t p et it io ne r co nc ed edth e d et erm in at io ns inth e 2 01 1 no ti ce. The reco rdals o l eav es no do ub t tha t the IRS’ lette r da te d F eb ru ary 23 , 20 15 , whi le co nf

us in g t o p et it io ne r, di d n otin di cat e, an d m ay no t b e co ns tru edto m ean , (1) th at , exc ep t fo r $1 1.0 3, re sp on de ntco nc ed edth e d efi ci en cy an d t he- 5 -

accu racy-rela te d p en al ty det erm in edinth e 2 01 1 n ot ic e an d (2 ) th atth e ta x due as a res ul t o f th atall eg edco nc es si on , whi chpe ti ti on er o wes forhi s t ax ab le y ear 20 11 , is on ly $11 .03 . On the reco rdbe fo re u s, we s us ta inres po nd en t’s d et erm in at io ns inth e 2 01 1 no ti ce. W e h av e co ns id eredall of t he co nt en ti on s an d a rg um en ts of t he pa rti es th at are n otdi sc us se d h erei n, an d we f in d t he m to be witho utm eri t, i rrel ev an t, an d/ or m oo t. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te redfor res po nd en t.