Sklar, Greenstein & Scheer, P.C. v. Commissioner
United States Tax Court
P is a corporation which provides medical services and is a sponsor of a qualified deferred compensation plan (the plan). S, G, and E were petitioner's owners and employees. The plan, S, G, and E opened securities investment accounts with X. After sustaining substantial losses in their accounts, the plan, S, G, and E filed a complaint against X alleging breach of fiduciary duty and other claims. P was not a claimant in the litigation.
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P is a corporation which provides medical services and is a sponsor of a qualified deferred compensation plan (the plan). S, G, and E were petitioner's owners and employees. The plan, S, G, and E opened securities investment accounts with X. After sustaining substantial losses in their accounts, the plan, S, G, and E filed a complaint against X alleging breach of fiduciary duty and other claims. P was not a claimant in the litigation. The litigation spanned 4 years, and P paid nearly 50 percent of the litigation costs incurred because the four claimants lacked the funds. R determined that…
1Opinion of the Court
OPINION
Laro, Judge:
The parties submitted this case to the Court without trial. See Rule 122. Petitioner petitioned the Court to redetermine respondent’s determination of a deficiency in tax for 1993 of $118,964, and an accuracy-related penalty for negligence under section 6662(a) of $23,793.
After concessions of the parties, we decide the following issues:(1) Whether petitioner may deduct legal fees of $97,274 paid on behalf of its qualified pension plan and certain individuals. We hold it may to the extent discussed herein;(2) whether petitioner is liable for the accuracy-related penalty for…
2Cases cited15 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Connecticut National Bank v. GermainSupreme Court of the United States · 1992
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Neely v. CommissionerUnited States Tax Court · 1985
- Commissioner v. HeiningerSupreme Court of the United States · 1943
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3Cited by8 opinions
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- Dupont v. United StatesDistrict Court, D. Hawaii · 2009
- Johnson v. CommissionerUnited States Tax Court · 2000
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