- 2 - 1. Held: Ps’ marriage contract did have the effect of stopping application of Louisiana’s usual community property laws for Federal income tax purposes. R has conceded that such a holding would result in P-W’s not being liable for deficiencies and additions to tax for the years in issue; R has asserted against P-H increased deficiencies and additions that are intended to apply if all the omitted income were properly reportable by P-H. 2. Held, further, R proved by clear and convincing evidence that P-H had unreported plumbing business income for 1994 and for 1995, that each year’s unreported plumbing business income resulted in an underpayment of tax for that year, and that at least some part of each year’s underpayment of tax was due to P-H’s fraud. Amounts determined. Sec. 6663, I.R.C. 1986. 3. Held, further, no portion of the underpayment of tax for either year was not due to fraud, except to the extent the underpayment resulted from causes other than unreported plumbing business income. Amounts determined. Sec. 6663(b), I.R.C. 1986. John S. Ponseti, for petitioners. Susan S. Canavello, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION CHABOT, Judge: By separate notices of deficiency, respondent determined deficiencies in individual income tax and penalties under section 66631 (fraud) against petitioners as follows: 1 Unless indicated otherwise, all section and chapter references are to sections and chapters of the Internal Revenue Code of 1986 as in effect for the years in issue.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011