TAX COURT OPINION

Case: Laura Elizabeth Mann
Docket Number: 9643-23S
Judge: Panuthos
Opinion Type: bench
Filed: 06/05/2024
Pages: 6

United States Tax Court Washington, DC 20217 LAURA ELIZABETH MANN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 9643-23S. 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 Special Trial Judge Peter J. Panuthos at San Francisco, California on April 3, 2024, containing his oral findings of fact and opinion rendered at the trial session at which this case was heard. In accordance with the oral findings of fact and opinion, an appropriate decision will be entered. (Signed) Peter J. Panuthos Special Trial Judge Served 06/05/24 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 Peter J. Panuthos April 3, 2024 3 Laura Elizabeth Mann v. Commissioner of Internal Revenue Docket No. 9643-23S 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. Pursuant to section 7463(b) the decision to be entered is not reviewable by any other court and the oral findings of fact and opinion shall not be relied upon as precedent in any other case. The oral findings of fact and opinion are made pursuant to the authority granted by section 7459(b) of the Internal Revenue Code and Tax Court Rule 152. Rule references in this opinion are to the Tax Court Rules of Practice and Procedure, and section references are to the Internal Revenue Code, in effect at all relevant times. Petitioner resided in California at the time the Petition was filed. Findings of Fact By notice of deficiency dated March 20, 2023, respondent determined a deficiency in petitioner's federal income tax for taxable year 2021 in the amount of $5,508 and determined an accuracy-related penalty for substantial understatement of tax pursuant to section 6662 in the 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 amount of $1,102. Respondent determined in the notice of 4 deficiency that petitioner omitted income on her 2021 federal income tax return and that such omission resulted in a substantial understatement of tax. Prior to trial, respondent conceded the section 6662 penalty. Therefore, the only issue remaining is whether petitioner received income which was not reported on her 2021 return. Discussion In her pleadings as well as at trial, petitioner acknowledged that the omitted income determined by respondent was not reported on her 2021 tax return. Further, petitioner indicated that the deficiency of $5,508 for tax year 2021 was correct. However, petitioner contends that the filed 2021 return was not authorized to be filed by her, and that an accountant improperly and "fraudulently" filed a return on her behalf. Petitioner also contends that the situation was similar for tax years 2015 through 2020, in that returns were "fraudulently" filed on her behalf. Respondent pointed out that with respect to tax years 2015 through 2020, deficiencies were not determined and Internal Revenue Service records reflected a zero balance of tax due for all of those years. The Court pointed out to petitioner that the Court did not have jurisdiction with respect to the years where a notice of deficiency or notice of determination had not 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 been issued. This Court is a court of limited 5 jurisdiction and may exercise jurisdiction only to the extent expressly provided by statute. See § 7442; Naftel v. Commissioner, 85 T.C. 527, 529 (1985). This Court's jurisdiction to redetermine a deficiency in income tax depends on: (1) the issuance of a valid notice of deficiency; and (2) the timely filing of a petition with the Court by the taxpayer. See §§ 6212, 6213; Rule 13(a),(c); Monge v. Commissioner, 93 T.C. 22, 27 (1989). With respect to tax year 2021 petitioner admits to having received income, acknowledges that such income was omitted from the return, and that the deficiency determined by respondent in the notice of deficiency is correct. While petitioner suggests that her 2021 return was fraudulently filed, she did not otherwise file a return or report income for tax year 2021. Given petitioner's concession, the only conclusion the Court can reach is to find in favor of respondent as to the deficiency determined in the notice of deficiency. Accordingly, the Court will enter a decision in this case for the full deficiency of $5,508 for the taxable year 2021. Based on respondent's concession, the Court concludes that there is no penalty due from petitioner pursuant to section 6662. Decision will be entered for respondent as to the deficiency and for petitioner as to the section 6662 6 penalty. This concludes the Court's oral findings of fact and opinion in this case. (Whereupon, at 9:36 a.m., the above-entitled matter was concluded.) 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 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 CERTIFICATE OF TRANSCRIBER AND PROOFREADER 7 CASE NAME: Laura Elizabeth Mann v. Commissioner DOCKET NO.: 9643-23S We, the undersigned, do hereby certify that the foregoing pages, numbers 1 through 7 inclusive, are the true, accurate and complete transcript prepared from the verbal recording made by electronic recording by Peter Petty on April 3, 2024 before the United States Tax Court at its session in San Francisco, CA, in accordance with the applicable provisions of the current verbatim reporting contract of the Court and have verified the accuracy of the transcript by comparing the typewritten transcript against the verbal recording. _______________________________________________ Susan Patterson, CDLT-174 4/11/24 Transcriber Date _______________________________________________ Traci Fine, CDLT-169 Proofreader 4/21/24 Date