- 10 -
disallowed petitioners' 1992 and 1993 deductions relating to
their claimed 1992 worthless stock loss.
Respondent also determined in the notice that petitioners
are liable under section 6662(a) for each of the years at issue
on the entire amount of the underpayment that respondent deter-
mined for each of those years (1) because of their negligence or
intentional disregard of rules or regulations under section
6662(b)(1) and (2) alternatively because of their substantial
understatement of income tax under section 6662(b)(2).
OPINION
Petitioners have the burden of proving that respondent's
determinations in the notice are erroneous. Rule 142(a); Welch
v. Helvering, 290 U.S. 111, 115 (1933). Respondent has the
burden of proving any new matter that was not raised in the
notice. Rule 142(a); Achiro v. Commissioner, 77 T.C. 881, 890
(1981).
1991 Interest Payment
Section 163(a) generally permits a deduction for all inter-
est paid or accrued within the taxable year on indebtedness. In
the case of a taxpayer other than a corporation, the amount
allowed as a deduction for investment interest for any taxable
year is not to exceed the net investment income of the taxpayer
for that year. Sec. 163(d)(1). Except for certain interest not
involved here, the term "investment interest" means any interest
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011