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Additions to Tax
Year Deficiency Sec. 6653(b)(1)1 Sec. 6653(b)(2) Sec. 6661
1984 $13,599 $ 6,780 * $ 3,390
1985 11,358 5,679 * 2,840
* 50 percent of the interest due on the deficiency in tax
After concessions by the parties, the sole issue for
decision is whether petitioner, who failed to report embezzlement
income, is liable for additions to tax for fraud. We hold she is
not.
FINDINGS OF FACT
Some of the facts have been stipulated and, with one
exception, are so found. The stipulated facts and the
accompanying exhibits are incorporated into our findings by this
reference. Petitioner resided in Duluth, Georgia, at the time of
filing her petition in this case.
For the taxable years 1984 and 1985, petitioner timely filed
Federal income tax returns, Forms 1040, as a head of household,
and as married filing jointly, respectively.2 On her tax returns
for 1984 and 1985, petitioner reported total income of $14,972
and $109,356, respectively. Respondent determined deficiencies
1 All section references are to the Internal Revenue Code in
effect for the taxable years in issue, and all Rule references
are to the Tax Court Rules of Practice and Procedure, unless
otherwise indicated. All dollar amounts are rounded to the
nearest dollar, unless otherwise indicated.
2 In February of 1985, petitioner married her second husband,
Byron K. Griffith, and the couple filed a joint return for that
year.
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