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misrepresentations concerning his income and assets to his tax
return preparers and to Internal Revenue Service (IRS) agents who
subsequently examined petitioners’ tax returns. Petitioner
failed to file corporate returns reflecting gains from sale of
the corporation’s interest in Kywood. On September 13, 1993,
petitioner entered a plea of guilty, and, on September 17, 1993,
he was adjudged guilty of violation of section 7201, tax evasion,
for his taxable year 1989.
OPINION
When the case was called for trial, respondent moved the
Court to dismiss for lack of prosecution those issues upon which
petitioner has the burden of proof and to sustain the
deficiencies determined by respondent. Those deficiencies
resulted from the unreported income described above that is the
basis for respondent’s determination of fraud, as well as
disallowed farm losses and other adjustments. Petitioner has the
burden of proving entitlement to the disallowed deductions and
that the determinations by respondent, other than the
determinations of additions to tax and penalties for fraud, are
erroneous. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S.
79, 84 (1992); Welch v. Helvering, 290 U.S. 111 (1933); New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). By
reason of his failure to appear for trial, to present evidence on
those issues, or otherwise properly to prosecute this case, those
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