- 3 - to the correct deficiency amount for the 1982 tax year because the error in the deficiency was evident from the other informa- tion set forth in the notice of deficiency. The issues for decision are: (1) Whether respondent bears the burden of proof when respondent increases a deficiency in her Amendment to Answer when the increase in deficiency was due to a clerical error in the notice of deficiency. We hold that respondent only bears the burden of establishing the clerical or mathematical error. Petitioner retains the burden with regard to respondent's sub- stantive determinations. (2) Whether respondent's Motion to Dismiss for Lack of Prosecution should be granted. We hold that it should. FINDINGS OF FACT At the time the petition was filed, petitioners resided in Los Gatos, California. By two statutory notices of deficiency, each dated July 11, 1988, respondent determined deficiencies, additions to tax, and increased interest in petitioners' Federal income taxes for the tax years 1979, 1980, 1981, and 1982. The adjustments determined in the notices of deficiency were with regard to petitioners' participation in two tax shelter projects: (1) Encore Leasing Corp. and (2) Kelsey/Soda Lake Mining. In the notice of deficiency for the taxable year 1982 (the notice of deficiency), respondent asserted adjustments of $93,930. Thus, respondent increased petitioners' taxable incomePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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