Woody F. Lemons - Page 67

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                  Petition because Petitioners had no notice that                     
                  these adjustments would be proposed, neither side                   
                  offered any evidence about these issues, and it                     
                  is too late now to raise them for the first time.                   
                  Respondent would have had to timely move for                        
                  permission to seek an increased deficiency and                      
                  properly plead these matters for them to be                         
                  issues.                                                             

                  We note that neither party takes issue with the                     
             adjustment made in the notice of deficiency to the self-                 
             employment tax reported by Mr. Lemons for 1988.                          
             Accordingly, that adjustment is hereby sustained.  We                    
             also note that no adjustment was made in the notice of                   
             deficiency to the self-employment tax reported by                        
             Mrs. Lemons for 1988.                                                    
                  In the case of respondent's adjustment to the self-                 
             employment tax reported by Mr. Lemons for 1987, petitioners              
             bear the burden of proving that respondent's adjustment is               
             incorrect.  Rule 142(a).  They did not take issue with this              
             adjustment in Mr. Lemons' petition or at trial.                          
             Accordingly, petitioners have failed to meet their burden                
             of proof, and we hereby sustain respondent with respect to               
             this adjustment.                                                         
                  As mentioned, no adjustment was made in the notice                  
             of the deficiency to the self-employment tax reported by                 
             Mrs. Lemons for 1987, and respondent has not sought to                   
             amend the Government's pleadings to raise such an adjust-                






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