Monahan v. Commissioner
United States Tax Court
1. HELD: This Court may raise sua sponte the doctrine of issue preclusion, or collateral estoppel. 2. HELD, FURTHER, interest payments that were credited to a partnership's bank account are taxable to Ps because P controlled partnership matters and benefited from and controlled the funds in that account. 3. HELD, FURTHER, a $<>25,000 payment that was deposited in Ps' bank account is taxable to Ps because Ps failed to prove that the payment represents reimbursement of legal…
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1. HELD: This Court may raise sua sponte the doctrine of issue preclusion, or collateral estoppel. 2. HELD, FURTHER, interest payments that were credited to a partnership's bank account are taxable to Ps because P controlled partnership matters and benefited from and controlled the funds in that account. 3. HELD, FURTHER, a $<>25,000 payment that was deposited in Ps' bank account is taxable to Ps because Ps failed to prove that the payment represents reimbursement of legal fees paid by P on behalf of a corporation. 4. HELD, FURTHER, sec. 6662(a), I.R.C., accuracy-related penalty imposed for…
1Opinion of the Court
OPINION
Halpern, Judge:
By notice of deficiency dated April 14, 1995, respondent determined a deficiency in petitioners’ Federal income tax for 1991 of $161,055 and a penalty under section 6662(a) of $32,211. Unless otherwise noted, all section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. In addition, all references to petitioner are to John M. Monahan.
After concessions by respondent, the issues for decision are (1) whether certain interest payments that were credited to a partnership’s…
2Cases cited34 opinions
- Parklane Hosiery Co. v. ShoreSupreme Court of the United States · 1979
- Montana v. United StatesSupreme Court of the United States · 1979
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Blonder-Tongue Laboratories, Inc. v. University of Illinois FoundationSupreme Court of the United States · 1971
- Helvering v. HorstSupreme Court of the United States · 1940
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