Respondent determined deficiencies in petitioners' Federal
income taxes for the taxable years 1989 and 1990, as well as an
addition to tax and a penalty, as follows:
Addition to Tax and Penalty
Year Deficiency Sec. 6651(a)(1) Sec. 6662(a)
1989 $3,132 --- $626
1990 4,521 $541 $904
After a concession by petitioners,2 the issues for decision
are as follows:
(1) Whether petitioners or respondent bears the burden of
proof with respect to respondent's deficiency determinations;
(2) whether petitioners understated their income on their
1989 and 1990 income tax returns by $11,149 and $15,236,
respectively;
(3) whether petitioners are liable for an addition to tax
for failure to timely file under section 6651(a)(1) for 1990; and
(4) whether petitioners are liable for an accuracy-related
penalty for negligence under section 6662(a) for 1989 and 1990.
Finally, whether petitioners are liable for self-employment
taxes for 1989 and 1990 (and if so, the correlative amount of the
Practice and Procedure.
2 Neither at trial nor on brief did petitioners contest
respondent's determination that they received unreported interest
income in the amount of $67 from Family Savings Federal Credit
Union in 1989. Accordingly, petitioners are deemed to have
conceded this adjustment to their income. Murphy v.
Commissioner, 103 T.C. 111, 120 (1994); Smith v. Commissioner,
T.C. Memo. 1994-188, affd. without published opinion 61 F.3d 31
(11th Cir. 1995).
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