Arc Electrical Construction Co. v. Commissioner of Internal Revenue

CARDAMONE, Circuit Judge:

The Commissioner of Internal Revenue (Commissioner or appellant) appeals from an order and decision of the United States Tax Court (Parr, J.) entered January 30, 1990 vacating its decision entered June 7, 1989. In its June 1989 decision the tax court found, inter alia, that taxpayer Arc Electrical Construction Co. (Arc or taxpayer) underpaid its taxes for 1974, and because the underpayment was due to fraud imposed a penalty of $27,884. On appeal the Commissioner challenges the tax court’s reversal in January 1990 of its June 1989 penalty for fraud holding. Arc insists…