Holland v. Commissioner
United States Tax Court
Held, for purposes of computing the maximum tax on earned income under sec. 1348, I.R.C. 1954, the 30-percent limitation on the amount of earned income from business in which capital is a material income-producing factor, as provided in sec. 911(b), to which sec. 1348(b)(1) refers for a definition of earned income, applies to net profits of a business within the United States.
Read the full summary
Held, for purposes of computing the maximum tax on earned income under sec. 1348, I.R.C. 1954, the 30-percent limitation on the amount of earned income from business in which capital is a material income-producing factor, as provided in sec. 911(b), to which sec. 1348(b)(1) refers for a definition of earned income, applies to net profits of a business within the United States. Held, further, respondent not barred from assessing deficiency by either sec. 7121, I.R.C. 1954, or collateral estoppel by virtue of taxpayers' execution of Form 4549 (consent to immediate assessment).
1Opinion of the Court
OPINION
Drennen, Judge:
Respondent determined deficiencies in petitioners’ 1972 and 1973 income taxes in the amounts of $2,776.26 and $19,948.38, respectively. Other adjustments in the statutory notice not having been placed in issue, the remaining question is whether petitioner-husband may include 100 percent of net profits from his unincorporated maintenance contracting business in “earned income” in computing his tax liabilities under the maximum tax provisions of section 1348. Resolution of this question turns upon two subissues:(1) Whether respondent is bound by an audit report issued by…
2Cases cited3 opinions
- Hudock v. CommissionerUnited States Tax Court · 1975
- Rousku v. CommissionerUnited States Tax Court · 1971
- Miller v. CommissionerUnited States Tax Court · 1969
3Cited by11 opinions
- Bruno v. CommissionerUnited States Tax Court · 1978
- Gaudern v. CommissionerUnited States Tax Court · 1981
- John C. Holland and Marie Holland v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1980
- Parker v. CommissionerUnited States Tax Court · 1985
- Bruno v. CommissionerUnited States Tax Court · 1978
6 more not listed; retrieve them via the Exa API.