Brunwasser v. Commissioner

1986 T.C. Memo. 196, 51 T.C.M. 1011, 1986 Tax Ct. Memo LEXIS 412
United States Tax Court·Decided May 15, 1986·No. Docket No. 27166-82.·Unpublished

Opinion

ALLEN N. BRUNWASSER AND BEVERLY R. BRUNWASSER, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Brunwasser v. Commissioner
Docket No. 27166-82.
United States Tax Court
T.C. Memo 1986-196; 1986 Tax Ct. Memo LEXIS 412; 51 T.C.M. (CCH) 1011; T.C.M. (RIA) 86196;
May 15, 1986
Allen N. Brunwasser, pro se.
Edward J. Laubach, Jr., for the respondent.

DRENNEN

MEMORANDUM FINDINGS OF FACT AND OPINION

DRENNEN, Judge: This case was assigned to Special Trial Judge Hu S. Vandervort pursuant to section 7456 and Rules 180 and 181. 1 The Court agrees with and adopts his opinion, which is set forth below.

OPINION OF THE SPECIAL TRIAL*414 JUDGE

VANDERVORT, Special Trial Judge: This case is before the Court on respondent's Motion for Summary Judgment and to Award Damages Under I.R.C. Section 6673, filed May 16, 1985. 2

In the notice of deficiency issued to petitioners on August 16, 1982, the Commissioner determined a deficiency in petitioners' Federal income tax for the taxable year 1978*415 in the amount of $1,864.22. The issues raised by respondent's motion are: (1) whether the statute of limitations on assessment expired prior to the issuance of the notice of deficiency for taxable year 1978; (2) whether there exists a deficiency in petitioners' 1978 Federal income taxes; and, (3) whether damages should be awarded to the United States pursuant to section 6673.

Petitioners filed their calendar year 1978 Federal income tax return on August 27, 1979, after receiving an extension of time to file such return to September 15, 1979. Petitioner Allen N. Brunwasser (Allen) signed the return on August 15, 1979 and petitioner Beverly Brunwasser (Beverly) signed the return on August 19, 1979.

Petitioners' 1978 Federal income tax return reflected a tax liability of $65,140.70. In arriving at this figure, petitioners chose not to itemize deductions, instead claiming the zero bracket amount as their deduction. The instructions on Form 1040 for 1978 stated that taxpayers who donot itemize deductions shall enter 0 on line 33 of Form 1040. Contrary to these instructions, petitioners entered $3,200 (the zero bracket amount for married couples filing a joint return pursuant*416 to section 63(d)(1)(A), as in effect for taxable year 1978) on line 33. Petitioners then used Schedule TC to calculate the tax due. However, the Schedule TC tables incorporate the $3,200 zero bracket amount deduction. Thus, in effect, petitioners deducted the zero bracket amount twice on their 1978 Form 1040.

On October 15, 1979, the Commissioner made a section 6213(b)(1) assessment of tax due and owing from petitioners for 1978 based upon the alleged mathematical or clerical error. 3 Thereafter, a bill was sent to petitioners requesting payment of $4,167.53. This figure was based upon petitioners' alleged mathematical or clerical error concerning the double deduction ($1,864.22), petitioners' failure to pay estimated taxes ($1,804.96) and the interest due upon these amounts ($498.35). 4 After receiving the bill for the additional tax, penalty and interest petitioners questioned the reason for such an assessment. The Commissioner treated petitioners' inquiry as a request for abatement of an assessment arising out of a mathematical or clerical error and abated the assessment pursuant to section 6213(b)(2)(A).

*417 Subsequent to the section 6213(b)(2) abatement, respondent conducted an audit of petitioners' 1978 income tax return. Respondent and petitioners reached an agreement with respect to the audit adjustments and petitioners paid the resulting deficiency. However, during the audit, no action was taken with respect to the double deduction that was the subject of the section 6213(b)(1) mathematical error assessment.

Thereafter, on August 16, 1982, respondent issued a notice of deficiency based upon petitioners' claimed double deduction on their 1978 Federal income tax return. Petitioners filed a timely petition and subsequently respondent filed the motion now before the Court.

On July 11, 1985, at a special trial session of the Court, in Pittsburgh, Pennsylvania, the parties were given a chance to present oral argument regarding respondent's motion. However, there was no appearance by or on behalf of petitioners. 5

*418 Rule 121(b) states that a decision on a motion for summary judgment shall be rendered "if the pleadings, * * * and any other acceptable materials, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that a decision may be rendered as a matter of law."

Thus, in deciding a motion for summary judgment we must clearly determine that there are no issues of material fact in dispute. Season-All Industries, Inc. v. Turkiye,, 425 F.2d 34 (3rd Cir. 1970);

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Brunwasser v. Commissioner, 1986 T.C. Memo. 196, 51 T.C.M. 1011, 1986 Tax Ct. Memo LEXIS 412 (tax 1986).

1986 T.C. Memo. 196 (Brunwasser v. Commissioner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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