- 7 - the community income from Sharer Accountancy and all other issues related thereto. Neither petitioner nor her attorney responded to this letter, nor were any additional documents submitted to respondent. However, because of the pending case involving petitioner's 1986 and 1987 tax years, the parties agreed to continue generally the trial of this case. On September 8, 1994, the opinion in petitioner's 1986 and 1987 case was rendered. See Sharer v. Commissioner, T.C. Memo. 1994-453. This Court found that petitioner and Mr. Sharer were living separate and apart during 1986 and 1987, and that the net income from Sharer Accountancy was Mr. Sharer's separate income and was not community income. The Court also found that petitioner had to include in income a portion of the amounts paid to her as "spousal wages". The Court found that the remainder of the payments represented repayment of loans made by petitioner to Mr. Sharer, and such payments were not income. On October 20, 1994,4 the same Appeals Officer contacted petitioner's attorney again to see if the 1988 tax year could be settled in light of the Court's opinion for the 1986 and 1987 tax years. By letter dated November 2, 1994, petitioner's attorney 4 From this point on, it appears from the record of both cases that all correspondence and communications between the parties dealt with both years 1988 and 1989. The issues considered by the parties in subsequent correspondence related to either year or both years. As discussed later in this opinion, the petition challenging respondent's determinations for the 1989 tax year was filed on June 24, 1993.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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