Dial USA, Inc. v. Commissioner
United States Tax Court
This case is controlled by the S corporation audit and litigation procedures contained in section 6241 et seq. R filed a motion for entry of decision pursuant to Rule 248(b). The proposed decision purports to decide the amount of each shareholder's basis in the subch. S corporation. Held: The amount of a shareholder's basis in an S corporation is not a "subchapter S item" that can be decided at the corporate level pursuant to section 6241 et seq.
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This case is controlled by the S corporation audit and litigation procedures contained in section 6241 et seq. R filed a motion for entry of decision pursuant to Rule 248(b). The proposed decision purports to decide the amount of each shareholder's basis in the subch. S corporation. Held: The amount of a shareholder's basis in an S corporation is not a "subchapter S item" that can be decided at the corporate level pursuant to section 6241 et seq. Therefore, we lack jurisdiction to decide the amount of a shareholder's basis.
1Opinion of the Court
OPINION
RUWE, Judge:
Dial USA, Inc., formerly Tritelco, Inc., is a subchapter S corporation subject to the S corporation audit and litigation procedures contained in section 6241 et seq.1 The S corporation audit and litigation procedures were added to the Code in 1982 to provide a method for unified treatment of subchapter S items among the shareholders. Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691-1692; see S. Rept. 97-640 at 25 (1982), 1982-2 C.B. 718, 729; Blanco Investments & Land, Ltd. v. Commissioner, 89 T.C. 1169, 1171-1172 (1987).
The matter presently…
2Cases cited3 opinions
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