Angela Matthews - Page 3

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                  The issues for decision are:  (1) Whether petitioners'                              
            failure to file Federal income tax returns for 1991 invalidates                           
            the notices of deficiency; (2) whether the result in this case is                         
            affected by the burden of proof; and (3) whether respondent's                             
            motion for the imposition of penalties and costs pursuant to                              
            section 6673 should be granted.                                                           
                  Some of the facts have been stipulated, and they are so                             
            found.  The stipulation of facts and attached exhibits are                                
            incorporated herein by this reference.  At the time of filing the                         
            petitions, petitioners resided in Malvern, Pennsylvania.                                  
                  Petitioners did not file Federal income tax returns for the                         
            1991 tax year.  At some point, petitioners submitted Forms 1040-                          
            NR for 1991 to the Internal Revenue Service (IRS).  The Forms                             
            1040-NR did not include any tax information.2  The IRS prepared a                         
            substitute for return for each petitioner on Forms 1040 for the                           
            1991 tax year.  In their respective petitions for redetermination                         
            of the deficiencies, petitioners originally disputed the                                  
            adjustments as determined by respondent in her notices of                                 
            deficiency.  Counsel for petitioners, Montford S. Ray, entered an                         
            appearance in each case on June 12, 1995, the date these cases                            
            were called at the calendar call in Philadelphia, Pennsylvania.                           

            2  The Forms 1040-NR were not made part of the record.                                    
            Petitioners, however, do not appear to dispute respondent's                               
            assertion that said forms did not contain relevant tax                                    

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