Stephens v. Commissioner
United States Tax Court
Petitioner husband was convicted of criminal violations of Federal statutes governing fraudulent activities. He was sentenced to prison and fined on some counts. On one count, he was sentenced to prison and fined, but the sentence was suspended and he was placed on probation on condition that he make restitution of the amounts obtained as the result of his fraud.
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Petitioner husband was convicted of criminal violations of Federal statutes governing fraudulent activities. He was sentenced to prison and fined on some counts. On one count, he was sentenced to prison and fined, but the sentence was suspended and he was placed on probation on condition that he make restitution of the amounts obtained as the result of his fraud. Held, the deduction of the restitution payment is governed by sec. 165(c)(2), I.R.C. 1954, and not sec. 162(a), I.R.C.Held, further, the standards governing the application of sec. 162(f), I.R.C., may be utilized in determining…
1Opinion of the Court
OPINION
TANNENWALD, Judge:
Respondent determined the following deficiency in, and additions to, petitioners’ Federal income tax for the taxable year 1984:
Additions to tax
Deficiency Sec. 6653(b)(1) 1 Sec. 6653(b)(2) Sec. 6661(a)
$501,835* $250,918 ** $125,459
After concessions, including the additions, the sole issue for decision is whether petitioners should be allowed to deduct a court-ordered restitution payment and are therefore entitled to an overpayment for which a timely claim was made.
All of the facts have been stipulated, and the stipulation of facts and the attached exhibits are…
2Cases cited12 opinions
- United States v. LemireCourt of Appeals for the D.C. Circuit · 1983
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Holt v. CommissionerUnited States Tax Court · 1977
- William E. Bailey v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1985
- Glen D. Wood, Karen Kraak Wood, and Karen Eslinger Wood v. United StatesCourt of Appeals for the Fifth Circuit · 1989
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3Cited by13 opinions
- Jon T. Stephens and Susanne Stephens v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1990
- Cavaretta v. Comm'rUnited States Tax Court · 2010
- Dileonardo v. CommissionerUnited States Tax Court · 2000
- Ginsburg v. CommissionerUnited States Tax Court · 1994
- Vasta v. CommissionerUnited States Tax Court · 1989
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