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considered in the alternative, and that she relies primarily on
our finding that petitioner failed to report fee income of
$408,318 in 1987. Indeed, respondent opens her brief with the
following statement: "If respondent prevails with respect to the
1987 year, and the legal fee is included therein, there would be
no deficiency for either 1988 nor 1989 as the notices of
deficiency for these years represent alternative theories of
inclusion of the legal fee."1
In addition to the issue of unreported income, we must
decide: (1) Whether the statute of limitations bars assessment
of a deficiency for 1987, (2) whether petitioner has been
relieved in part of his burden of proof, and (3) whether
petitioner is liable for certain additions to tax and a penalty.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
FINDINGS OF FACT
Introduction
Some of the facts have been stipulated and are so found.
The stipulation of facts filed by the parties and accompanying
1 Respondent's notice of deficiency for 1988 contains an
adjustment increasing income in the amount of $27,258, which is
labeled "Interest Income". The parties have not dealt with that
item on brief. Since respondent has prevailed with respect to
1987, we assume that respondent has conceded that adjustment.
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