Estate of Sweeney v. Commissioner

1980 T.C. Memo. 120, 40 T.C.M. 171, 1980 Tax Ct. Memo LEXIS 464
CourtUnited States Tax Court
DecidedApril 16, 1980
DocketDocket Nos. 8293-76, 276-78.
StatusUnpublished
Cited by1 cases

This text of 1980 T.C. Memo. 120 (Estate of Sweeney v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Sweeney v. Commissioner, 1980 T.C. Memo. 120, 40 T.C.M. 171, 1980 Tax Ct. Memo LEXIS 464 (tax 1980).

Opinion

ESTATE OF J. SHIRLEY SWEENEY, Deceased, JANE A. SWEENEY, Independent Executrix, and JANE A. SWEENEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent; ESTATE OF J. SHIRLEY SWEENEY, Deceased, JANE A. SWEENEY, Executrix, and JANE A. SWEENEY, Surviving Spouse, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Estate of Sweeney v. Commissioner
Docket Nos. 8293-76, 276-78.
United States Tax Court
T.C. Memo 1980-120; 1980 Tax Ct. Memo LEXIS 464; 40 T.C.M. (CCH) 171; T.C.M. (RIA) 80120;
April 16, 1980, Filed
Donald J. Forman, for the petitioners.
William P. Hardeman, for the respondent.

SCOTT

SUPPLEMENTAL MEMORANDUM OPINION

SCOTT, Judge: Our previous opinion, T.C. Memo. 1979-387, directed that the decision in this case be entered under Rule 155 of the Rules of Practice and Procedure of this Court. Pursuant to that direction, respondent on January 25, 1980, filed a Computation for Entry of Decision which was served on January 28, 1980, with notice that objection thereto, accompanied by an alternative computation, should be filed by February 19, 1980. *466 On February 4, 1980, this Court received an informal document on behalf of petitioners disagreeing with respondent's computation with respect to the self-employment tax due by the Estate of J. Shirley Sweeney. Attached to this document was a computation of the self-employment tax of Dr. Sweeney for each of the years 1972 through 1975 which differed from respondent's computation only because it included in the self-employment income of Dr. Sweeney for each of the years 1972 through 1975 the $6,000 amount paid to him by the Southwestern Diabetic Foundation, Inc. In our prior opinion we held this $6,000 to constitute compensation to Dr. Sweeney for each of these years.

Respondent's computation for the years 1972 and 1973 made no change in the self-employment tax computation from that determined in his notice of deficiency. Respondent's computation of self-employment tax for each of the years 1974 and 1975 reduced the self-employment income as shown in the notice of deficiency by an amount which the parties had agreed at the trial was a proper additional deduction for depreciation. Petitioners' computation resulted in a greater deficiency in self-employment tax for each year than*467 did respondent's computation. The amounts of increases were $23.08 for 1972, $480 for 1973, $440.65 for 1974, and $474 for 1975. We filed the informal document received on behalf of petitioners as petitioners' computation and on February 20, 1980, we entered an order directing the parties to file a written response to the opposing party's computation and a memorandum in support thereof on or before March 17, 1980. 1

*468 Rule 155 provides for a computation by the parties for entry of decision pursuant to the opinion of the Court determining the issues. Rule 155 specifically provides that consideration will not be given to any new issues at an argument with respect to the correct computation of deficiency. We have held that an adjustment which is merely a matter of accounting, such as apportionment of income among beneficiaries of a trust or election to spread certain income over prior years where the statute permits, is not a new issue. See Sparrow v. Commissioner, 18 B.T.A. 1, 20 (1929); Myers v. Commissioner, 12 T.C. 648, 651 (1949). However, we have been just as consistent in holding that a new issue will not be considered at a hearing held under Rule 155. See The John Gerber Company v. Commissioner, 44 B.T.A. 26, 31 (1941); Estate of Samuel Stein v. Commissioner, 40 T.C. 275, 280 (1963); Commissioner v. Meldrum & Fewsmith, Inc., 230 F.2d 283, 284-285 (6th Cir. 1956), affg. 20 T.C. 790 (1953). Therefore the question here is whether the Court's determination that Dr. Sweeney received compensation*469 in the amount of $6,000 from the Southwestern Diabetic Foundation, Inc., in each of the years 1972 through 1975 automatically results in this amount being included in his self-employment income.

Section 1401(a) and (b), I.R.C. 1954, 2 imposes a tax on self-employment. Section 1402(a) defines the term "net earnings from self-employment" to mean the gross income derived by an individual from a trade or business carried on by that individual less the deductions attributable thereto. Section 1402(c)

Free access — add to your briefcase to read the full text and ask questions with AI

Related

A. Duda & Sons, Inc. v. United States
560 F.2d 669 (Fifth Circuit, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
1980 T.C. Memo. 120, 40 T.C.M. 171, 1980 Tax Ct. Memo LEXIS 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-sweeney-v-commissioner-tax-1980.