TAX COURT OPINION

Case: Kevin L. Starr
Docket Number: 3380-09S
Judge: Colvin
Opinion Type: bench
Filed: 03/18/2010
Pages: 6

UNITED STATES TAX COURT WASHINGTON, DC 2021 7 KEVIN L . STARR, Petitione r V . COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No . 3380-09S . 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 herewith to petitioner and to respondent a copy of the pages of the transcript of the hearing of the above case before Special Trial Judge Robert N . Armen, Jr . at Detroit, Michigan, on March 3, 2010, containing his oral findings of fact and opinion rendered at the conclusion of the hearing . In accordance with the oral findings of fact and opinion, an Order and Decision will be entered . (Signed ) Robert N . Armen, Jr. Special Trial Judg e DATED : Washington, D .C . March 18, 2010 SERVED MAR 2,2 2010 . 1 Bench Opinion by Special Trial Judge Robert N . Arme n 2 March 3, 201 0 i 3 Starr v . Commissioner Docket No . 3380-09S 4 I . 2 5 THE COURT HAS DECIDED TO RENDER ORAL FINDINGS OF 6 FACT AND OPINION IN THIS CASE ., AND THE FOLLOWIN G 7 REPRESENTS THE COURT'S ORAL FINDINGS OF FACT AN D 8 OPINION . THE ORAL FINDINGS OF FACT AND OPINION SHALL 9 NOT BE RELIED UPON AS PRECEDENT IN ANY OTHER CASE . 10 II . 11 This proceeding was heard as a Small Tax Case 12 pursuant to the provisions of section 7463 of th e 13 Internal Revenue Code of 1986, as amended, and Rules 14 170 through 175 of the Tax Court Rules of Practice and 15 Procedure . 16 17 This bench opinion is made pursuant to the 111- 18 authority granted by section 7459(b) of the Internal 19 Revenue Code of 1986, as amended, and Rule 152 of the 20 Tax Court Rules of Practice and Procedure . 21 Hereinafter in this bench opinion, and unles s 22 indicated otherwise, all section numbers refer to the 23 Internal Revenue Code, as amended, and all Rul e 24 numbers refer to the Tax Court Rules of Practice and 25 Procedure . Heritage Reporting Corporation (202) 628-4888 3 1 IV . 2 Alexandra E . Nicholaides appeared on behalf of 3 respondent . There was no appearance by or on behalf 4 of Kevin L . Starr (petitioner) . 5 V . 6 By Notice dated and served on September 23, 2009, 7 this case was calendared for trial at the Court' s 8 trial session commencing on March 1, 2010, in Detroit, 9 Michigan . 10 On February 16, 2010, respondent filed a motion 11 For Entry Of Decision . Thereafter, by order dated 12 February 18, 2010, the Court calendared respondent's 13 motion for hearing on March 1, 2010, in Detroit , 14 Michigan . 15 At the call of this case from the calendar an d 16 upon the recall of this case for hearing, respondent's 17 counsel appeared and argued in support of the motion . 18 On neither occasion was there any appearance by or on 19 behalf of petitioner . 20 VI . 21 The facts necessary to a ruling on respondent's 22 motion are as follows : 23 By separate notices dated November 3, 2008, 24 respondent determined deficiencies in petitioner's 25 income taxes for 2004, 2005, and 2006 in the amount s Heritage Reporting Corporation (202) 628-4888 4 1 of $3,829, $3,069, and $3,063, respectively . For each 2 of those years respondent also determined additions to 3 tax under section 6651(a)(1) for failure to file , 4 under section 6651(a)(2) for failure to pay, and under 5 section 6654(a) for failure to pay estimated tax . 6 Petitioner timely filed a petition fo r 7 redetermination, contesting respondent's deficienc y 8 determinations . In his petition, petitioner admitted 9 that he had not filed returns for 2004 through 2006 . 10 Petitioner alleged that "with allowable deductions and 11 exemptions, I would have owed little or no Federa l 12 tax ." However, petitioner did admit that "my 13 liability for SECA tax would have been $500 - $800 per 14 year ." Petitioner did not place in issue any of the 15 additions to tax, although he did ask for "amnesty " 16 because "I do not have that kind of money ." 17 Subsequent to this case being at issue , 18 petitioner filed income tax returns for 2004, 2005 , 19 and 2006 . Petitioner attached a Schedule C, Profit or 20 Loss From Business, and a Form 8829, Expenses fo r 21 Business Use of Your Home, to each return . Because of 22 deductions claimed, the returns reported no section 1 23 income tax ; however, the returns reported sel f 24 employment tax of $812, $449, and $770, respectively . 25 Heritage Reporting Corporation (202) 628-4888 1 After review, respondent's office of Appeal s 2 accepted petitioner's returns as filed . The Office of 3 Appeals then recomputed the additions to tax based on 4 the amount of tax reported on those returns . 5 Respondent's efforts to conclude this case b y 6 stipulation were frustrated by petitioner's refusal to 7 communicate either telephonically or by letter , 8 apparently in an effort to postpone payment for as 9 long as possible . Ultimately, respondent filed the 10 motion now before us . Respondent seeks only a 11 decision reflecting the amount of tax reported b y 12 petitioner on his late-filed returns and the additions 13 to tax as recomputed by the Office of Appeals . 14 VII . 15 Petitioner's late-filed returns constitute an 16 admission that petitioner is liable for the ta x 17 reported thereon . See and compare McCabe v . 18 19 Commissioner , T .C . Memo . 1983-325 ; Collins v . Commissioner , T .C . Memo . 1956-156 . 20 Insofar as the additions to tax are concerned, 21 petitioner admits failing to file until 2009 . 22 Further, petitioner's request for "amnesty" in his 23 petition does not constitute an assignment of error, 24 see Rule 34(b)(4), sufficient to place the additions 25 to tax in issue . Accordingly, petitioner is deemed t o Heritage Reporting Corporation (202) 628-4888 6 1 have conceded them . Id . 2 VIII . 3 In view of the foregoing , we shall grant 4 respondent ' s Motion For Entry Of Decision, filed 5 February 16, 2010, and enter decision for respondent 6 for the deficiencies and additions to tax in th e 7 reduced amounts as set forth in the preamble of 8 respondent ' s motion . 9 IX . 10 THIS CONCLUDES THE COURT ' S ORAL FINDINGS OF FACT 11 AND OPINION IN THIS CASE . 12 (Whereupon , at 10 :54 a .m ., the bench opinion in 13 the above - entitled matter was concluded . ) 14 15 16 17 18 19 20 21 22 23 24 25 Heritage Reporting Corporation (202) 628-4888