Kirin v. Commissioner of Internal Revenue, 080696 FEDTAX, 9082-88

Docket Nº:9082-88
Opinion Judge:WRIGHT, Judge
Party Name:PAUL M. KIRIN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Attorney:Larry Kars, for petitioner. Cheryl B. Harris, for respondent.
Case Date:August 06, 1996
Court:United States Tax Court
 
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T.C. Memo. 1996-356

PAUL M. KIRIN, Petitioner

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

No. 9082-88

United States Tax Court

August 6, 1996

Larry Kars, for petitioner.

Cheryl B. Harris, for respondent.

MEMORANDUM OPINION

WRIGHT, Judge.

This matter is before the Court on respondent's motion for entry of decision in accordance with a stipulation of settlement (the stipulation) filed October 11, 1994. We must decide whether the subject decision properly reflects petitioner's entitlement to an investment tax credit.

Background

Petitioner resided in Novi, Michigan, when he filed the petition. This case is part of respondent's tax shelter litigation project entitled "Scheer". The Scheer litigation project involves a partnership organized to purchase and market video tapes. By notice of deficiency dated February 18, 1988, respondent determined deficiencies in, additions to, and increased interest on petitioner's Federal income tax as follows:1

Additions to Tax and Increased Interest

Year

Deficiency

Sec. 6653(a)(1)

Sec. 6653(a)(2)

Sec. 6659

Sec. 6621(c)

Sec. 6661

1981

$ 6,435

$322

1

$1,844

2

---

1982

11,245

562

1

2,885

2

$407

1 50% of the interest due on the deficiency.

2 120% of the interest payable under sec. 6601.

In the stipulation, petitioner agreed to be bound by the test case entitled Pinto v. Commissioner, docket No. 17407-86. This Court entered a decision in the Pinto case on January 18, 1995. The stipulation provides:

With respect to all adjustments in respondent's notice of deficiency relating to the Scheer Project tax shelter, more specifically, the limited partnership entitled Richard II, Ltd., the parties stipulate to the following terms of settlement:

1. THE ABOVE ADJUSTMENTS ARE THE ONLY ISSUES IN THIS CASE WITH RESPECT TO ALL PARTIES;

2. The above adjustments, as specified in the preamble, shall be redetermined by application of the same formula as that which resolved the same tax shelter adjustments with respect to the following taxpayers:

Names: Melvin and Barbara Pinto Tax Court Docket No.: 17407-86

(hereafter the CONTROLLING CASE)

3. All issues involving the above adjustments shall be resolved as if the petitioners in this case were the same as the taxpayers in the CONTROLLING CASE;

5. A decision shall be submitted...

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