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SUPPLEMENTAL MEMORANDUM OPINION
COLVIN, Judge: This matter is before the Court on remand
from the U.S. Court of Appeals for the Third Circuit in Spear v.
Commissioner, 41 F.3d 103 (3d Cir. 1994), vacating and remanding
T.C. Memo. 1993-213.
The issues for decision on remand are:
1. Whether petitioners had any cash on hand on December
31, 1974. We hold that petitioners had $200,000 cash on hand on
December 31, 1974, instead of zero as determined by respondent.
2. Whether petitioners are liable for the addition to tax
for fraud. We hold that they are not.
3. Whether, if petitioners are not liable for the addition
to tax for fraud, respondent is barred from assessing tax for the
years in issue. We hold that respondent is barred from assessing
tax for 1975, but not for 1976 and 1977.
References to petitioner are to Jeanette Spear. Section
references are to the Internal Revenue Code in effect during the
years in issue. Rule references are to the Tax Court Rules of
Practice and Procedure.
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