Myco Indus. v. Commissioner
United States Tax Court
Respondent mailed petitioner a notification under sec. 534(b), I.R.C., that respondent proposed to issue a notice of deficiency determining that petitioner was liable for the accumulated earnings tax under sec. 531, I.R.C. The notification did not state the years to which it pertained. Held: Notwithstanding the lack of prejudice to petitioner, respondent's notification was deficient and respondent will have the burden of proof. Sec. 534(a), I.R.C.
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Respondent mailed petitioner a notification under sec. 534(b), I.R.C., that respondent proposed to issue a notice of deficiency determining that petitioner was liable for the accumulated earnings tax under sec. 531, I.R.C. The notification did not state the years to which it pertained. Held: Notwithstanding the lack of prejudice to petitioner, respondent's notification was deficient and respondent will have the burden of proof. Sec. 534(a), I.R.C. Respondent's notification must include the year to which it pertains. Sec. 534(b), I.R.C.
1Opinion of the Court
OPINION
BEGHE, Judge:
This opinion addresses respondent's motion under Rule 142(e)1 to allocate the burden of proof on the reasonableness of petitioner's alleged business need" for accumulated earnings tax purposes.
Petitioner is a corporation that has its principal place of business in Artesia, New Mexico, the same location it had at the time it filed its petition. Respondent determined that petitioner is liable for the accumulated earnings tax imposed by section 531 for the taxable years ended April 30, 1983, and 1984, in the amounts of $1,435,692 and $1,713,914, respectively. Petitioner…
2Cases cited6 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Jeremiah Benzvi and Robert L. McLeroy v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1986
- Abrams v. CommissionerUnited States Tax Court · 1985
- Steven E. Donley v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1986
- Manson Western Corp. v. CommissionerUnited States Tax Court · 1981
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Myco Indus. v. CommissionerUnited States Tax Court · 1992