1 Section references are to the Internal Revenue Code as
amended. Rule references are to the Tax Court Rules of Practice
T.C. Memo. 2006-87
UNITED STATES TAX COURT
JOEL RAPPAPORT, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 10777-04. Filed April 25, 2006.
Martin A. Stoll, for petitioner.
Willie Fortenberry, Jr., for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
COLVIN, Judge: Respondent determined a deficiency of
$47,650 in petitioner’s Federal income tax for 2001 and additions
to tax (1) for failure to file under section 6651(a)(1)1 in the
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2 Among other concessions, petitioner concedes he is liable
for the addition to tax for failure to pay estimated tax under
sec. 6654(a), and respondent concedes that petitioner is not
liable for the addition to tax under sec. 6651(a)(2).
amount of $5,096.25; (2) for failure to pay tax under section
6651(a)(2) in the amount of $1,812; and (3) for failure to pay
estimated tax under section 6654(a) in the amount of $786.40.
Less than a month before trial, petitioner submitted an
income tax return for 2001 to respondent in which he reported
more income than respondent had determined and deducted expenses
that flowed through to his return from two S corporations.
Respondent asserted in an amendment to answer filed 5 days before
trial that petitioner’s deficiency for 2001 is $168,424 and that
he is liable for additions to tax of $42,106 under section
6651(a)(1) and $2,317 under section 6654(a).
After concessions,2 the issues for decision are:
Whether petitioner may deduct a greater amount of
expenses flowing through to him from his S corporations than
respondent allowed. We hold that he may not.
Whether petitioner is liable for the addition to tax
for failure to timely file his 2001 return under section
6651(a)(1). We hold that he is.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
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Petitioner lived in Florida when he filed the petition.
Petitioner graduated fro