Berry v. Commissioner: S corporation income attribution and §6662 penalty

Berry v. Commissioner, T.C. Memo. 2025-109, No. 10634-20., 2025 BL 376377, Court Opinion

The Tax Court held that Andrew Berry was a 50% shareholder of an S corporation in 2016 and must include his pro rata share of the corporation’s unreported income. It sustained an accuracy-related penalty subject to Rule 155 computations.

Holding

The court found that Andrew Berry owned 50% of Phoenix Construction & Remodeling, Inc. (PCR) in 2016 and must i…