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Additions to Tax Under Section Penalty
Year 6651(a)(1)6653(a)(1)(A)6653(a)(1)(B)6653(a)(1)6661 6662(a)
1986 --- $1,257 * --- $6,285 ---
1987 $11,111 2,482 * --- 12,060 ---
1988 7,038 --- --- $1,607 7,785 ---
1989 6,354 --- --- --- --- $4,972
1990 5,947 --- --- --- --- 4,743
*Plus an addition of 50 percent of the interest due on the deficiency.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable years before
the Court, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
After concessions,1 the issues remaining for decision are:
(1) Whether petitioner M.S. Food Stores, Inc. (the corporate
petitioner), had unreported income from rebates and coupons in
its taxable years ending September 30, 1987, 1988, 1989, and
1990;
(2) whether the corporate petitioner had unreported gross
receipts in its taxable years ending September 30, 1987, 1988,
1989, and 1990;
(3) whether the corporate petitioner is liable for additions
1 On brief respondent has conceded the fraud additions to
tax and penalties for all years before the Court. Respondent has
also conceded that petitioner Carolyn P. Sutton is an innocent
spouse as to the unexplained bank deposits and disputed rebate
and coupon checks diverted from the corporate petitioner (grossly
erroneous items). Respondent further conceded that petitioner
Carolyn P. Sutton is an innocent spouse as to any additions to
tax predicated upon those income adjustments, provided that the
Court determines that the substantial understatements are in
amounts sufficient to satisfy the statutory requirements of sec.
6013(e)(1) through (4). The parties have made various other
concessions which are set out in their stipulations of fact and
which will be discussed in the text below.
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