- 2 - 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. After concessions, the issues for decision are: (1) Whether petitioner had unreported income in 1988 and 1989; (2) whether petitioner is liable for the addition to tax and penalty for fraud in 1988 and 1989, respectively, or, in the alternative, liable for the addition to tax and penalty for negligence; and (3) whether the period of limitations for assessment is open for 1988 under section 6501(c)(1) or, in the alternative, open under section 6501(e)(1)(A). FINDINGS OF FACT Some of the facts have been stipulated, and the stipulated facts are incorporated in our findings by this reference. Included among the stipulated exhibits is the transcript of petitioner's criminal trial. At the time the petition was filed, petitioner was incarcerated at the California Correctional Institution in Tehachipi, California. Petitioner started a business known as the Stardust Modeling Agency (Stardust) in 1987. Petitioner opened a bank account for Stardust, purchased furniture for Stardust, and signed the lease for Stardust. Petitioner operated Stardust from the end of 1987 into mid-1991. The hours of operation of Stardust were Monday through Saturday, 10 a.m. to 10 p.m. During 1988 and 1989,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011