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Additions to Tax
Section Section Section Section Section
Year Deficiency 6653(a)(1)(A)1 6653(a)(1)(B) 6653(b)(1)(A) 6653(b)(1)(B) 6661
1986 $40,946 $8 * $30,584 ** $10,195
1987 15,889 15 * 11,692 ** 3,897
* 50 percent of the interest due on the portion of the underpayment attributable to
negligence or disregard of rules or regulations.
** 50 percent of the interest due on the portion of the underpayment attributable to
fraud.
The issues remaining for decision are:2
(1) Does petitioner have unreported income for 1986? We
hold that he does to the extent stated herein.
(2) Is petitioner entitled for 1986 to an exemption for a
dependent child under section 151(a) and (c)? We hold that he is
not.
(3) Is petitioner liable for 1986 for the additions to tax
under section 6653(a)(1)(A) and (B)? We hold that he is to the
extent stated herein.
1 Unless otherwise indicated, all section references are to the
Internal Revenue Code in effect for the years at issue. All Rule
references are to the Tax Court Rules of Practice and Procedure.
2 At trial, respondent conceded the additions to tax for fraud
for 1986 and the deficiency in, and additions to, tax for 1987.
Respondent also concedes on brief $95 of the $1,282 State and
local income tax refund that petitioner received during 1986 and
did not report as income in his 1986 Federal income tax return
(return) and that respondent determined was income for that year.
On brief, petitioner concedes that for 1986 he has unreported
income of $1,187 attributable to that State and local income tax
refund. Although respondent argues for the first time on brief
that petitioner is liable for the addition to tax under sec.
6651(a) because he filed his 1986 Federal income tax return
(return) on or after Dec. 1, 1988, on brief, petitioner does not
dispute that he filed his 1986 return at that time, and he
concedes that he is liable for that addition to tax. See Rule
41(b).
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Last modified: May 25, 2011