Eastern States Casualty Agency, Inc. v. Commissioner
United States Tax Court
R issued a notice of final S corporation administrative adjustment (FSAA) to E for its taxable year ending Dec. 31, 1984. E, an S corporation, had four shareholders during 1984. P, as tax matters person, filed a timely petition for readjustment and a motion to dismiss for lack of jurisdiction.
Read the full summary
R issued a notice of final S corporation administrative adjustment (FSAA) to E for its taxable year ending Dec. 31, 1984. E, an S corporation, had four shareholders during 1984. P, as tax matters person, filed a timely petition for readjustment and a motion to dismiss for lack of jurisdiction. P contends that the FSAA is invalid because S corporations with 10 or fewer shareholders are excepted from the unified audit and litigation procedures pursuant to I.R.C. sec. 6244 and 6231(a)(1)(B). Held, prior to the effective date of sec. 301.6241-1T(c), Temporary Proced. & Admin. Regs., no S…
1DissentWhalen, J.
In this case, the majority decides that the exception for small partnerships, set forth in section 6231(a)(1)(B), is not required by section 6244 to be “extended to and made applicable to subchapter S items” for purposes of the unified S corporation audit and litigation procedures in subchapter D, chapter 63, subtitle F of the Internal Revenue Code, sections 6241-6245 (subchapter D). The majority’s decision hinges on its view that the small partnership exception has no relation to the term “partnership items” as used in subchapter C, chapter 63, subtitle F of the Internal Revenue Code,…
2Cases cited9 opinions
- Maxwell v. CommissionerUnited States Tax Court · 1986
- N.C.F. Energy Partners v. CommissionerUnited States Tax Court · 1987
- Saso v. CommissionerUnited States Tax Court · 1989
- Harrell v. CommissionerUnited States Tax Court · 1988
- Blanco Inv. & Land, Ltd. v. CommissionerUnited States Tax Court · 1987
4 more not listed; retrieve them via the Exa API.