TAX COURT OPINION

Case: Melissa S. Morsi
Docket Number: 15920-16S
Judge: Carluzzo
Opinion Type: bench
Filed: 04/27/2018
Pages: 4

SYM UNITED STATES TAX COURT WASHINGTON, DC 20217 MELISSA S. MORSI, Petitioner, v. ) ) ) ) Docket No. 15920-16S COMMISSIONER OF INTERNAL REVENUE, Respondent. ) ) ) ORDER 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 the pages of the transcript of the trial in the above case before Chief Special Trial Judge Lewis R. Carluzzo at Denver, Colorado, containing his oral findings of fact and opinion rendered at the trial session at which the case was heard. In accordance with the oral findings of fact and opinion, decision will be entered for respondent. (Signed) Lewis R. Carluzzo Special Trial Judge Dated: Washington, D.C. April 27, 201 8 SERVED Apr 27 2018 Bench Opinion by Special Trial Judge Lewis R. Carluzzo 3 April 18, 2018 1 2 3 Melissa S. Morsi v. Commissioner of Internal Revenue 4 5 6 7 8 9 Docket No. 15920-16S 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 (bench opinion). Section references made in this bench opinion are to the Internal Revenue Code of 1986, as amended, in 10 effect for the relevant periods, and Rule references are 11 12 13 14 to the Tax Court Rules of Practice and Procedure. This bench opinion is made pursuant to the authority granted by section 7459(b) and Rule 152. This proceeding for the redeterminations of 15 deficiencies is a small tax case subject to the provisions 16 of section 7463 and Rules 170 through 174. Pursuant to 17 18 19 section 7463(b) the decision entered in this case shall not be treated as precedent for any other case. There was no appearance by or on behalf of 20 petitioner. Miles B. Fuller appeared on behalf of 21 respondent. 22 23 24 In a notice of deficiency dated April 12, 2016 (notice), respondent determined deficiencies in, and imposed section 6662(a) penalties with respect to 25 petitioner's 2013 and 2014 Federal income taxes. The icr bers i 4 1 2 3 4 5 6 7 8 9 issues for decision are whether petitioner is liable for those deficiencies and penalties. At the time the petition was filed, petitioner was a resident of Colorado. According to the notice, for each year in issue, petitioner failed to report certain income and overstated certain deductions. In the petition, petitioner challenges only the disallowance of those deductions. We proceed as though petitioner has conceded the omitted 10 income items. Otherwise, petitioner bears the burden of 11 proving that she is entitled to the deductions here in 12 dispute, see Rule 142, and her failure to appear for trial 13 to satisfy that burden, coupled with no concession of 14 error by respondent, leaves us no choice but to sustain 15 16 17 the adjustments giving rise to the deficiency. Respondent bears the burden of production with respect to the section 6662(a) penalty imposed in the 18 notice for each year in issue. See sec. 7491(c). 19 According to respondent, the penalty applies for each year 20 because the underpayment of tax required to be shown on 21 petitioner's Federal income tax return is a substantial 22 understatement of income tax. In this case, the 23 deficiency, the underpayment of tax, and the 24 25 understatement of income tax for each year are computed in the same manner and exceed $5,000. See secs. 6211, ncribers i 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 6664(a), and 6662(d)(2). That being so, because the underpayment of tax required to have been shown on petitioner's Federal income tax return for each year in issue is a substantial understatement of income tax, because respondent has introduced evidence showing the necessary written approval for the imposition of the penalty for each year, see sec. 6751 (b); Graev v. Commissioner, 149 T.C. (Dec. 20, 2017), supplementing 147 T.C.__ (Nov. 30, 2016), and because petitioner has failed to show reasonable cause for the underpayment, see sec. 6664(c); Higbee v. Commissioner, 116 T.C. 438 (2001), respondent's imposition of the section 6662(a) penalty is sustained for both years in issue. To reflect the foregoing, decision will be entered for respondent. This concludes the Court's bench opinion in this 17 matter. (Whereupon, at 4:13 p.m., the above-entitled matter was concluded.) 18 19 20 21 22 23 24 25