David C. Wilson - Page 16

                                       - 16 -                                         
          In reaching this conclusion, we rely heavily upon the                       
          overvaluation of the Sentinel EPE recyclers.  Accordingly,                  
          respondent is sustained on this issue with respect to the                   
          underlying deficiency for 1981 in docket No. 21243-85 and the               
          underlying deficiencies for 1978 and 1979 in docket No. 7908-89.            
          With respect to the underlying deficiency for 1981 in docket No.            
          7908-89, we sustain respondent's disallowance of the deductions             
          and credits claimed with respect to EI's investment in                      
          Clearwater.7  We also note that each petitioner has stated his              
          concession of this issue on brief.  The record plainly supports             
          respondent's determinations regardless of such concessions.  For            
          a detailed discussion of the facts and the applicable law, see              
          Provizer v. Commissioner, supra.                                            
          Issue 3.  Sec. 6653(a) Negligence                                           
               In the notice of deficiency in docket No. 7908-89,                     
          respondent determined that Sorey was liable for the negligence              
          additions to tax under section 6653(a)(1) and (2) for 1981.                 
          Sorey has the burden of proving that respondent's determination             
          is erroneous.  Rule 142(a); Luman v. Commissioner, 79 T.C. 846,             
          860-861 (1982).  In addition, in her first amendments to answer,            

          7                                                                           
               Respondent determined that Sorey was not entitled to any               
          deduction on his 1981 Federal income tax return with respect to             
          his investment in EI, however the notice of deficiency states               
          that only items "reported with respect to your [Sorey's]                    
          equipment leasing activities for the year 1981 in Efron                     
          Investors, Ltd. Partnership are disallowed."  We sustain only               
          respondent's disallowance of the losses and credits claimed with            
          respect to EI's investment in Clearwater.                                   




Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011