- 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 income
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011