TAX COURT OPINION

Case: Herbert C. Young
Docket Number: 28257-10
Judge: Kroupa
Opinion Type: bench
Filed: 04/12/2012
Pages: 4

UNITED STATES TAX COURT WASHINGTON, DC 20217 HERBERT C. YOUNG, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. ) ) ) ) ) ) O R D E R Docket No. 28257-10 Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of transcript of Vegas, Nevada, on March 15, 2012, containing her oral fact and opinion. the trial before Judge Diane L. Kroupa at Las findings of the pages of the In accordance with the oral findings of fact and opinion, decision will be entered for respondent. (Signed) Diane L. Kroupa Judge Dated: Washington, D.C. April 12, 2012 SBRVED APR 1 3 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BENCH OPINION BY JUDGE DIANE L. KROUPA HERBERT C. YOUNG V. COMMISSIONER DOCKET NO.: 28257-10 MARCH 15, 2012 3 THE COURT: The Court has decided to render oral findings of fact and opinion in this case and the following represents the Court's oral findings of fact and opinion. These oral findings of fact and opinion shall not be relied upon as precedent in any other case. This bench opinion is made pursuant to the authority granted by Section 7459(b) and Rule 152. All section references are to the Internal Revenue Code as amended for 2008, the year at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. Petitioner appeared on his own behalf, and Fred Green appeared on behalf of Respondent. FINDINGS OF FACT AND OPINION The record reflects or the parties do not dispute the following facts. Petitioner resided in Nevada when he filed the petition. Petitioner filed a timely Federal income tax return for 2008. In processing the return, Respondent recomputed Petitioner's 2008 tax liability due to a Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 perceived computational error on the return. Based on the recomputation, Respondent issued Petitioner a refund. Respondent thereafter selected Petitioner's 2008 tax return for examination. After examining the return, Respondent concluded that Petitioner failed to report dividend and interest income, and issued Petitioner a deficiency notice determining a deficiency. The sole issue for decision is whether Petitioner is liable for the deficiency. Petitioner concedes that he received the dividend and interest income, but argues that he is still not liable for the deficiency for three reasons. First, Petitioner contends that the Respondent should be barred from determining a deficiency after incorrectly recomputing Petitioner's tax liability. We disagree. The law is well settled that the Commissioner's making an erroneous tax recomputation does not preclude him from later determining a deficiency. See Willey v. Commissioner, T.C. Summ. Op. 2011-79. We must, therefore, reject Petitioner's contention. Second, Petitioner contends that he is not responsible for paying tax for 2008 on the unreported Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 dividend income because he has included that income in his 2010 tax return. We applaud Petitioner for reporting the dividend income, but it is well settled that tax is computed on an annual basis, and that income must be reported in the year that it is earned or received. See Burnet v. Sanford & Brooks Co., 282 U.S. 359 (1931). Accordingly, Petitioner's contention lacks merit. Finally, Petitioner contends that he is not liable for the deficiency because Respondent failed to disclose whether there exist cases favorable to Petitioner's case. We disagree. Respondent has no obligation under the law to do Petitioner's legal research, or point Petitioner toward favorable cases. Therefore, Respondent's failure, if any, to disclose favorable cases to Petitioner does not affect whether Petitioner is liable for the deficiency. We sustain Respondent's determination. To reflect the foregoing, we shall enter a decision for Respondent. This concludes the Court's oral findings of fact and opinion in this case. (Whereupon, at 4:04 p.m., the bench opinion in the above-entitled matter was concluded.) Heritage Reporting Corporation (202) 628-4888