Tax Court Memorandum Opinion by Diane L. Kroupa: "Tax Court Lacks Jurisdiction Over Deficiency Notice Until Completion of Partnership-Level Proceedings"

The United States Tax Court has published a memorandum opinion by Diane L. Kroupa, a judge serving on the United States Tax Court, entitled Sydell L. Miller (petitioner) vs. Comissioner of Internal Revenue (Respondent). Judge Kroupa has determined that the court cannot proceed with a case regarding an individual's tax deficiencies. The respondendent tried to issue a deficiency notice to the petitioner for assorted deficiencies and penalities in her federal income taxes from 1999 through 2001. At the time, the petitioner had been receiving funds from a partnership from the Sydell Miller 1999 Charitable Remainder Annuity Trust (CRAT), and had been treating the income from this trust as nontaxable. The respondent found issue with the actions of the petitioner, asserting that the petitioner was liable under CRAT anti-abuse regulation and additionally owed taxes from capital gain income generated from the partnership. However, the court decided that the deficiency notice was invalid as it was issued before the conclusion of partnership-level proceedings.

See also Diana L. Kroupa, "Tax Court Lacks Jurisdiction Over Deficiency Notice Until Completion of Partnership-Level Proceedings," 9 2009 TNT 152-9, August 10, 2009.

Posted by Raj Chudgar, Associate Editor, Wealth Strategies Journal