TAX COURT OPINION

Case: Marguerite Komondy
Docket Number: 14413-09
Judge: Colvin
Opinion Type: bench
Filed: 02/25/2011
Pages: 6

UNITED STATES TAX COURT WASHINGTON, DC 20217 RMM MARGUERITE KOMONDY, Petitioner, v. ) Docket No. 14413-09 COMMISSIONER OF INTERNAL REVENUE, Respondent. O R D E R Pursuant and Procedure, to the Rule 152 (b) , Tax Court Rules of Practice it is ORDERED that the Clerk of the Court shall the pages of transmit the to petitioner and to respondent a copy of transcript of February 11, 2011, containing her oral opinion rendered in this case. the above case before Judge Diane L. Kroupa on findings of fact and 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. February 25, 2011 SERVEDMar012011 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 3 Bench Opinion by Judge Diane L . Kroupa February 11, 2011 Komondy v. Commissioner Docket l\io. 14413-09 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 findin s of fact and opinion shall nót be relied upon 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 for 2006, the year at issue, and all Rule references .are to the Tax Court Rules of Practice and Procedure. This deficiency case is before the Court on respondent's Motion ,for Summary Judgment, filed on December 29, 2010 . The Court scheduled respondent' s motion for a hearîng in Hartford, Connecticut, on February 7, 2011. Petitioner failed to file an objection to respondent's motion and also failed to attend the scheduled hearing. At the calendar call of the session, Anthony Parent specially appeared on behalf of petitioner, and Frank Louis appeared on behalf of respondent. Petitioner admits she pas yet to file 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 return for 2006. FINDINGS OF FACT The record establishes or the parties do not dispute the followingsfacts:. In addition, the facts are deemed admitted due to petitioner's failure to respond to respondent's Reqùest for Admissions under Rule 90. Petitioner did not file a Federal incõme tax return for 2006. Respondent prepared a substitute for return based upon third party payor information that petitioner received a taxable distribution from an IRA or other retirement plan, taxable dividends, interest, royalty income, social security income and the proceeds of stock transactions. Respondent issued petitioner a statutory deficiency notice based upon the substitute for return. Resýondent determined a $106,366 deficiency in petitioner's Federal income tax for 2006; a $23,881.95 late filing addition under section 66517(a) (1) ; an $11, 144 . 91 late payment addition under section 6651(a) (2); and a $5,021.65 estimated tax addition under section 6654. Petitioner timely filed a petition. As mentioned previously, respondent filed a - motion for summary judgment . // 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 OPINION We must-address whether to grant respondent's motion for summary judgment. Summary judgment is intended to expedite litigation and avoid unnecessary or expensive trials. See, e.g., FPL Group, Inc. v. Commissioner 116 TiC. 73, 74 (2001). A motion for summary judgment will be granted if the pleadings, answers to interrogatories, depositions, admissions, and other acceptable materials, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that a decision may be rendëred as a matter of law. Rule 121(b) ; Electric Arts, Inc. v. Commissioner, 118 T.C. 226, 238 (2002). We are satisfied that there is no genuine issue, as to any material fact and that a decision may be rendered as a matter of law as petitioner admits she has yet to file her return for 2006. We shall grani respondent's motion for summary judgment. It is a fundamental taxaprinciple that gross income includes all income from whatever source derived, including interest, dividends, royalty income, sales of securiEies and distributions from qualified plans. Sec. 61(a) (1).. The income petitioner earned in 2006, as determined both by Heritage Reporting Corporation (202) 628-4888 \ 6 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 réspondent as well as by the facts deemed admitted by the Court, constitute gross income. We therefore sustain the deficiency determined in respondent's statutory notice. - We now focus on the additions to tax. An addition to tax is imposed if a taxpayer fails to file a timely Federal income tax return. Sec. 6651(a) (1). The record "reflects that petitioner failed to file a Federal income tax return by the prescribed due date for 2006, and has in fact failed to file one as of today. Accordingly, petitioner is liable for the addition to tax under section 6651(a) (1) for 2006. Next,-we address the late payment addition to tax imposed under section 6651(a) (2) for the late payment of the tax shown as due on the substitute for return that respondent prepared for petitioner. Petitioner has failed to pay the amount shown on the substitute for return and is therefore liable for this addition. Finally, we address the addition to tax under section 6654(a) for failure to pay estimated tax. There are- certain mechanical exceptions to the addition to tax under section 6654(a) that petitioner has failed to prove. Consequently, petitioner is 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 liable for the addition to tax under section 6654 (a) for failure to pay estimated tax for 2006. To reflect the foregoing, decision will be entered for respondent and an appropriate order will be issued granting respondent's motion for summary judgment i-egarding 2006. THIS «CONCLUDES THE COURT' S ORAL FINDINGS OF FACT AND OPINION IN THIS CASE. (Whereupon, at 11:39 a.m., the bench opinion in the above-entitled matter was concluded.) / / / / // // // / / // // // // // // Heritage Reporting Corporation (202) 628-4888