TAX COURT OPINION

Case: Allen Wayne & Christina Clark Caster
Docket Number: 22306-07
Judge: Colvin
Opinion Type: bench
Filed: 07/23/2008
Pages: 4

Sud: .> Gzek UNITED STATES TAX COURT WASHINGTON, D.C. 20217 ALLEN WAYNE and CHRISTINA CLARK CASTE R Petitioners, * STAT .- I &-w JUDGE V . Docket No . 22306-07 COMMISSIONER OF INTERNAL REVENU E Respondent . * * ORDE R 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 petitioners and to respondent a copy of the pages of the transcript of the trial of the above case before Judge Joseph R . Goeke at Washington, D .C ., on June 27, 2008, containing his oral findings of fact and opinion rendered at the conclusion of trial . In accordance with the oral findings of fact and opinion, decision will be entered under Rule 155 . (Signed) Joseph Robert Goeke Judge DATED : Washington, D .C . July 23, 2008 SERVED JUL 2 3 2008 3 1 Bench Opinion by Judge Joseph Robert Goeke 2 June 27, 200 8 3 Allen Wayne & Christina Clark Caster v . Commissioner 4 22306-0 7 5 THE COURT : The Court has decided to render 6 oral findings of fact and opinion in this case, an d 7 the following represents the Court's oral findings of 8 fact and opinion . The oral findings of fact an d 9 opinion shall not be relied upon as precedent in any 10 other case . 11 This bench opinion is made pursuant t o 12 authority granted by Section 7459(b) of the Internal 13 Revenue Code and Rule 152 of the Tax Court Rules of 14 Practice and Procedure . Hereinafter in this bench 15 opinion and unless otherwise indicated, all section 16 references are to the Internal Revenue Code . 17 Respondent was represented in this case by 18 Michael A . Raiken, and Petitioners appeared pro se . 19 This is a deficiency case involving the years 2003 and 20 2004 . The parties have agreed to a stipulation o f 21 settlement, and Respondent made a concession at trial 22 that narrowed the issues for dispute before the Court 23 to the addition to tax under Section 6662(a) for the 24 taxable year 2003, all other issues having been 25 settled by the parties or conceded by Respondent . Heritage Reporting Corporatio n (202) 628-4888 4 1 Because of the settlement reached by the 2 parties and Respondent ' s concession , a Rule 15 5 3 computation will be necessary . Concerning th e 4 addition to tax under Section :6662(a), Petitioner s 5 maintain that they had reasonable cause to claim the 6 disallowed deductions on their tax return for the 7 taxable year 2003, which formed the basis fo r 8 Respondent's determination . 9 Respondent argues under Section 6662(b) that 10 Petitioners' return for 2003 is subject to th e 11 addition to tax because of negligence and because of 12 substantial understatement . We address Respondent's 13 argument relative to negligence . The facts 14 demonstrate that certain items on Petitioners' 2003 15 federal income tax return represent the same dollar 16 amounts claimed in more than one section of th e 17 return . 18 After cross-examination and inquiry by the 19 Court, Petitioners acknowledge that certain items had 20 been claimed on their return more than once . These 21 items included significant deductions for tax an d 22 interest, and other items . At trial, Petitioner 23 acknowledged certain mistakes, including th e 24 duplication of certain expenses claimed . On this 25 record, we are forced to find that Petitioners were Heritage Reporting Corporatio n (202) 628-4888 5 1 negligent in filing their 2003 federal income ta x 2 return, and therefore, we uphold the addition to tax 3 under Section 6662(a) for the taxable year 2003 . 4 As stated previously, a Rule 155 computation 5 will be necessary before a decision can be entered in 6 this case, because of the settlement of other issue s 7 in the case . 8 This ends the Court's oral findings of fact 9 and bench opinion in this case . 10 (Whereupon, at 3 :55 p .m ., the bench opinion 11 in the above-entitled matter was concluded . ) 12 13 14 15 16 17 18 1 9 20 21 22 23 2 4 25 Heritage Reporting Corporation (202) 628-4888