Lee W. Yates and Wendy S. Yates - Page 2

                                        - 2 -                                         
          petitioners' Federal income taxes, as well as accuracy-related              
          penalties, in the following amounts:                                        
          Accuracy-Related Penalty                                                    
          Year            Deficiency                 Sec. 6662(a)                     
          1991              $6,098                      $1,220                        
          1992               6,794                       1,359                        

               The issues for decision are:  (1) Whether petitioners'                 
          horse-breeding activities constitute an activity engaged in for             
          profit for the purposes of sections 162 and 183; and (2) whether            
          petitioners are liable for the accuracy-related penalty under               
          section 6662(a).                                                            
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated, and they are so                
          found.  The stipulation of facts and the attached exhibits are              
          incorporated herein by this reference.  At the time of filing the           
          petition, petitioners resided in Clovis, California.                        
               During the years in issue, petitioners were each employed              
          full time as registered nurse supervisors.  Since 1991,                     
          petitioners also operated a medical/legal consulting firm.  The             
          firm reviewed medical charts upon request.  Petitioners reported            
          combined gross income from this employment during the period 1991           
          through 1994 in the following amounts:                                      
                              Year             Amount                                 
                              1991            $105,992                                
                              1992             133,572                                
                              1993             138,042                                
                              1994             145,475                                




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011