TAX COURT OPINION

Case: Robert C. Rhodes
Docket Number: 15122-09S
Judge: Colvin
Opinion Type: bench
Filed: 04/27/2010
Pages: 4

UNITED STATES TAX COURT WASHINGTON , DC 2621 7 ROBERT C . RHODES , Petitione r V . 'COMMISSIONER OF INTERNAL REVENUE, Respondent O R D E R Docket No . 15122-09S . Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it i s ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the trial of the above case before Chief Special Trial Judge Peter J . Panuthos at New York, New York (Westbury), on April 13, 2010, containing his oral findings of. fact and opinion rendered at the conclusion of .the.trial . . In accordance with the oral findings of fact and opinion , decision .will be entered for respondent . (Signed ) Peter J . Panuthos Special Trial Judge Dated :' Washington, D .C . .April 27, 2010 SERVED APR 2 8 2010 3 1 BENCH OPINION B Y 2 CHIEF SPECIAL TRIAL JUDGE PETER J . PANUTHOS 3 ROBERT C . RHODES V . COMMISSIONE R 4 DOCKET NO . : 15122-09S APRIL 13, 2010 5 The Court has decided to render ora l 6 findings of fact and opinion in this case , and the 7 following represents the Court ' s oral findings of fact 8 and opinion . The oral findings of fact and opinion 9 shall not be relied upon as precedent in any other 10 case . 11 This case was heard pursuant to th e .12 provisions of Section 7463 of the Internal Revenue 13 Code in effect at the time the petition was filed . 14 Respondent determined a deficiency in the 15 Petitioner's Federal Income Tax in the amount of 16 $1,045 for the taxable year 2007 . Respondent also 17 determined an addition to tax in the amount of $103 18 pursuant to Section 6651(a)(1) . 19 The issues in dispute are whether (1 ) 20 Petitioner received and is taxable on interest income 21 and ( 2) whether Petitioner is liable for the addition 22 to tax for a delinquent return . 23 At the time the petition was filed, 24 Petitioner resided in New York . 25 During the taxable year 2007 , Petitione r Heritage Reporting Corporation (202) 628-4888 4 1 received interest income from Citibank in the amount 2 of $9,395 . Petitioner received some Forms 1099 from 3 Citibank, but did not receive all of such forms for 4 the accounts . 5 Petitioner filed his 2007 tax return on July 6 7, 2008 . There is nothing in the record indicating 7 that Petitioner requested an extension of time to file 8 his return . Petitioner reported, some of the interest income, but did not report all of the interest income 10 received from Citibank . 11 At trial Petitioner admitted that h e 12 received all of the interest income determined b y 13 Respondent . He indicated that his real argument and 14 dispute was with Citibank which did not properly send 15 him Forms 1099 . 16 Section 61(a)(4 ) provides that gross income 17 means all income from whatever source derived , 18 including interest . " Generally , interest earned on 19 investment is taxable to the person who controls the 20 principal ." The nonreceipt of Form 1099 does no t 21 convert axable income into nontaxable income . 22 Vaughn v . Commissioner, T .C . Memo ,1992-317, affirmed 23 without published opinion 15 F . 3d 1095 (9th Circuit 24 1993) . 25 Petitioner essentially conceded this case . Heritage Reporting Corporation (202) 628-4888 5 1 He presented no evidence that Respondent' s 2 determination was in error . He acknowledged receip t 3 of the interest income and presented no evidence as to 4 the reason for the delinquent filing of the return . 5 Under these circumstances Respondent ' s determination 6 is sustained . 7 A decision will be entered for Respondent . 8 This concludes the Court's oral findings of 9 fact and opinion in this case . 10 (Whereupon , at 2 :34 p .m ., the bench opinion 11 in the above - entitled matter was concluded . ) 12 13 1 4 15 16 17 18 19 20 21 22 23 24 25 Heritage Reporting Corporation (202) 628-4888