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petitioner has the burden of proof on the negligence issue, we
conclude that petitioner conceded this issue. See subparagraphs
(4) and (5) of Rule 151(e); Sundstrand Corp. v. Commissioner, 96
T.C. 226, 344 (1991); Money v. Commissioner, 89 T.C. 46, 48
(1987).
The negligence addition to tax applies to those 1986 items
in supra table 12, that we found had a personal purpose and with
respect to which we did not sustain respondent’s fraud
determination or with respect to which respondent did not
determine fraud. The negligence addition to tax also applies to
those 1986 items in supra table 12, the purpose of which we were
unable to determine on this record; those items total $3,325.84.
We hold for respondent on this issue.
III. Amounts of Deficiencies
In this part of the opinion, petitioner has the burden of
proving by a preponderance of the evidence that respondent erred
in the notice of deficiency determinations as to matters of fact.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
A. Amounts of Constructive Dividends
In supra table 10, we set forth our conclusions that
$10,164.71 of the disputed 1985 amounts was constructive
dividends to Betsy, that $90 were Sley Corporations’ business
expenses, and that we could not find that the remaining
$12,759.63 of disputed Markette payments fit into either
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