Robert D. Grossman, Jr. - Page 33

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                                      Table 19                                        
                         Respondent’s Contentions                                     
               Year      (Table 15)           Court’s Holdings                        
               1983           $10,329.90               $6,189.79                      
               1984           5,169.50                 780.00                         
               1985           12,879.74                9,966.71                       
               1986           13,322.32                5,963.43                       
               Petitioner does not contend that he is entitled to                     
          offsetting deductions or credits for any of those years.30  Thus,           
          we conclude that respondent has shown by clear and convincing               
          evidence that petitioner had an underpayment of tax for each of             
          the years 1983 through 1986.                                                
               We hold for respondent on this issue.                                  
          B.  Fraudulent Intent                                                       
               Respondent contends that “petitioner’s returns for four                
          consecutive years omitted substantial amounts of constructive               
          dividend income”, petitioner was “intimately aware” of the                  
          pattern of omissions, petitioner’s “specialized knowledge and               


               30   The parties have stipulated that petitioner and Betsy--           
               are entitled to credits in the above amounts [the amounts of           
               F.I.C.A. taxes withheld from Sley Corporations’ payments to            
               Betsy] for 1983, [$2,391.91] 1984 [$2,532.59] and 1985                 
               [$2,791.78; see supra table 3] in determining the amounts of           
               overpayments or deficiencies to be paid with respect to                
               their joint returns for said years.                                    
          We understand this to be an agreement relating to payments, and             
          not an agreement affecting the determination of the                         
          “underpayment” as used in sec. 6653(b)(1).  However, this                   
          agreement would affect the amount of any additional addition to             
          tax under sec. 6653(b)(2).                                                  




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