Estate of Carberry v. Commissioner
United States Tax Court
Respondent determined a deficiency in which he disallowed a special allocation of partnership intangible drilling costs. Petitioners and respondent executed a Form 872-A extending the period of limitations.
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Respondent determined a deficiency in which he disallowed a special allocation of partnership intangible drilling costs. Petitioners and respondent executed a Form 872-A extending the period of limitations. Held: 1. The form was properly executed and is binding on both petitioners; 2. Respondent is not estopped from asserting the deficiency; 3. The special allocation did not have substantial economic effect and is not recognized pursuant to sec. 704(b)(2), I.R.C.; and 4. The increased interest rate applies since the phrase "without substantial economic effect" is the equivalent of "without…
1Opinion of the Court
OPINION
TANNENWALD, Judge:
Respondent determined a deficiency of $8,698 in Timothy F. Carberry’s (decedent) and Ella J. Brady’s (his wife)1 income tax for the taxable year 1967 and increased the interest rate on the underlying deficiency under section 6621(c).2 The deficiency arises in respect of a net operating loss carryback from 1970. The issues for decision are whether: (1) A Form 872-A was properly executed; (2) respondent is estopped from asserting a deficiency because he failed to act diligently; (3) a special allocation of partnership intangible drilling costs (IDC) is valid under…
2Cases cited21 opinions
- Frieling v. CommissionerUnited States Tax Court · 1983
- Pierre Boulez v. Commissioner of Internal RevenueCourt of Appeals for the D.C. Circuit · 1987
- Ewing v. CommissionerUnited States Tax Court · 1988
- Boulez v. CommissionerUnited States Tax Court · 1981
- LaVerne v. CommissionerUnited States Tax Court · 1990
16 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Demos v. CommissionerUnited States Tax Court · 1994
- Birnbaum & Manaker, P.C. v. CommissionerUnited States Tax Court · 1993
- NADLER v. COMMISSIONERUnited States Tax Court · 1992
- Cotter v. CommissionerUnited States Tax Court · 1991
- Estate of Carberry v. CommissionerUnited States Tax Court · 1990
1 more not listed; retrieve them via the Exa API.