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Additions to Tax
Year Deficiency Sec. 6653(b)1 Sec. 6653(b)(1)2 Sec. 6653(b)(2)
1981 --- $18,047 --- ---
3
1982 $785 --- $33,549
3
1983 --- --- 88,803
3
1984 --- --- 41,156
3
1985 --- --- 57,564
1Addition is 50 percent of the underpayment as defined in sec. 6653(c).
2Addition is 50 percent of the underpayment as defined in sec. 6653(c).
3Addition is 50 percent of the interest payable under sec. 6601 with respect to
such portion of the underpayment attributable to fraud.
As alternatives to additions to tax for fraud under section
6653(b),1 respondent determined that petitioners were liable for
additions to tax under sections 6651(a)(1) (failure to file) and
6653(a)(1) and (2) (negligence).
Petitioners have conceded the deficiency and the additions
to tax under section 6651(a)(1) (failure to file). The issue
remaining for decision is whether petitioner Mark N. Kantor
(Mark) is liable for additions to tax for fraud for his failure
to file timely income tax returns for the years in issue, or in
the alternative, whether petitioners are jointly and severally
liable for additions to tax for negligence for those years.
Respondent has conceded that petitioner Marla R. Kantor (Marla)
is not liable for the fraud addition, but contends that, if Mark
1Unless otherwise identified, 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.
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Last modified: May 25, 2011