Michael C. Winter and Lauren Winter v. Commissioner

No one disputes that Winter reported inconsistently with his S corporation’s return and that this forced the Commissioner to make adjustments. Section 6037(c) commands that “any adjustment required to make the treatment of the items by such shareholder consistent with the treatment of the items on the corporate return shall be * * * assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.”

The majority doesn’t really wrestle with the meaning of this section, but instead pokes around in other corners of…