TAX COURT OPINION

Case: John S. Blain & Paulette A. Blain
Docket Number: 12536-07S
Judge: Colvin
Opinion Type: bench
Filed: 10/08/2008
Pages: 4

UNITED STATES TAX COURT WASHINGTON, D.C. 2021 7 JOHN S . & PAULETTE A . BLAIN , 4-. .r w SERVICE C AL . d STAT . -11-7. JUDGE FILE Petitioners , Docket No . 12536-07 S V . COMMISSIONER OF INTERNAL REVENUE, Respondent, O R D E 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 to petitioners and to respondent a copy of the pages of the transcript of the trial for this case before Judge Diane L . Kroupa at Boise, Idaho on September 10, 2008, containing her oral findings of fact and opinion rendered after trial concluded . In accordance with the oral findings of fact and opinion, decision will be entered for petitioners . (Signed ) Diane L. Kroupa Judge Dated : Washington, D .C . October 8, 2008 SERVED OCT - 8 2008 2 1 Bench Opinion by Judge Diane Kroupa September 10, 200 8 2 Blain v . Commissioner Docket No . 12536-07 S 3 THE COURT : The Court has decided to render 4 oral findings of fact and opinion in this case, an d 5 the following represents the Court's oral findings of 6 fact and opinion . These oral findings of fact and 7 opinion shall not be relied upon as precedent in any 8 other case . 9 This proceeding was conducted as a Small Tax 10 Case under section 7463 and Rules 170 through 175 . 11 This bench opinion is made pursuant to the authority 12 granted by section 7459(b) and Rule 152 . All section 13 references are to the Internal Revenue Code for 2004, 14 the year at issue, and all rule references are to the 15 Tax Court Rules of Practice and Procedure . 16 John Blain appeared pro se, and John Davis 17 appeared on behalf of respondent . 18 FINDINGS OF FACT AND OPINIO N 19 Certain facts have been stipulated . The 20 stipulation of facts the parties filed, wit h 21 accompanying exhibits, is incorporated by this 22 reference . The facts are so found . 23 Petitioners resided in Idaho at the time 24 they filed the petition . 25 Petitioners were public school teachers who Heritage Reporting Corporatio n (202) 628-4888 3 1 filed a joint return for 2004 claiming a $5,15 0 2 individual retirement accountant (IRA) contribution, a 3 $2,659 qualified tuition and expense deduction, and a 4 $2,835 Hope Scholarship credit . 5 Respondent issued petitioners a statutory 6 deficiency notice on March 5, 2007, determining a 7 $2,382 deficiency in petitioners' Federal Taxes for 8 2004 . 9 The public school district in whic h 10 petitioners taught established various retirement 11 plans with respect to which petitioners had amounts 12 withheld from their wages and contributed to thes e 13 designated plans . Petitioners provided documentation 14 that they had at least $5,150 contributed to an IRA or 15 similar plan . Petitioners are thus entitled to th e 16 $5,150 IRA contribution claimed on their return for 17 2004 under section 215 . 18 Petitioners reported $97 of dividend income 19 shown on a Form 1099-DIV regarding petitione r 20 husband's IRA investment at Oppenheimer Capital Income 21 Fund A . Respondent determined in the deficienc y 22 notice that not only should petitioners report the $97 23 of dividends, but also $93 of capital gain dividends 24 from the Oppenheimer Capital Income Fund A . 25 Petitioner husband established that the $93 of capital Heritage Reporting Corporatio n (202) 628-4888 a e 4 1 gain dividends from the Oppenheimer Capital Income 2 Fund A was attributable to a tax-exempt retiremen t 3 plan that is not subject to current reporting . Thus, 4 petitioners' taxable income is not increased by the 5 $93 amount, nor are any computational adjustment s 6 necessary . 7 Petitioner husband established that he and 8 his wife incurred $2,659 in tuition and fees a s 9 claimed on the return for 2004 and that no part of 10 such amount is attributable to the $2,835 Hop e 11 Scholarship credit petitioners claimed . Petitioners 12 are therefore entitled to the education expense s 13 claimed for 2004 under sections 25A and 222 . 14 To reflect the foregoing, a decision will be 15 entered for petitioners . 16 This concludes the Court's oral findings of 17 fact and opinion in this case . 18 (Whereupon, at 9 :14 a .m ., the bench opinion 19 in the above-entitled matter was concluded . ) 20 21 22 23 24 25 Heritage Reporting Corporation (202) 628-4888