- 3 -
Wheaton is an innocent spouse within the meaning of section
6013(e). On that basis, respondent has conceded all deficiencies
in income tax, additions to tax, and penalties determined with
respect to Mary Wheaton. We accept respondent’s concession and
shall enter decisions accordingly.
Respondent asks that we enter decisions with respect to
petitioners Dorchester Industries Inc. (Dorchester) and Frank
Wheaton, Jr. (Frank Wheaton), based on a settlement agreement
that respondent claims those petitioners entered into on November
6, 1995. We must determine whether Dorchester and Frank Wheaton
did, in fact, enter into such an agreement and, if so, the
consequence thereof. Respondent asks that we enter decisions
with respect to Dorchester and Frank Wheaton as follows:
Docket No. 20515-93 (Dorchester Industries)
Additions to Tax
Sec. Sec. Sec.
Year Deficiency 6653(b)(1) 6653(b)(2) 6661
1981 $92,643 $46,322 None None
1982 89,411 44,706 1 None
1985 230,360 115,180 1 $57,590
1 The addition to tax under I.R.C. sec. 6653(b)(2) is
50 percent of the interest payable under I.R.C. sec. 6601 with
respect to the portion of the underpayment which is attributable
to fraud, which is the entire deficiency for each of the taxable
years 1982 and 1985.
Additions to Tax
Sec. Sec.
Year Deficiency 6653(b)(1)(A) 6653(b)(1)(B)
1986 $1,376 $1,032 1
1 The addition to tax under I.R.C. sec. 6653(b)(1)(B) is
50 percent of the interest payable under I.R.C. sec. 6601 with
respect to the portion of the underpayment which is attributable
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