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section 6653(b)(1) and for 1989 and 1990 for the penalties for
fraud under section 6663(a) with respect to the entire portion of
the underpayment for each of those years that is attributable to
the underreporting of gross receipts of NDV.
Issues as to Which Petitioners Have the Burden of Proof
Underreporting of Gross Receipts of NDV
Respondent determined in the notice that petitioners under-
reported the gross receipts of NDV by $40,111, $65,102, $41,190,
and $60,094 for the years 1987, 1988, 1989, and 1990, respec-
tively.38 On brief, respondent reduces the amounts of the gross
receipts that she claims petitioners underreported for 1988 and
1990 to $65,009 and $52,111, respectively.
We found above on the record before us that respondent
proved by clear and convincing evidence that Mr. Katerelos under-
reported certain gross receipts of NDV in petitioners' returns
for each of the years 1987 through 1990. A fortiori, we further
find on that record that petitioners failed to sustain their
burden of proving error in respondent's determination that they
underreported those gross receipts for each of those years.
Accordingly, we sustain respondent's determination, as modified
38 Although respondent determined in the notice that petitioners
underreported the gross receipts of NDV by $4,714 for 1991, the
parties stipulated that petitioners' gross receipts for 1991
should be increased by only $999.49. Thus, we need not address
whether petitioners underreported any of NDV's gross receipts for
that year.
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