Wallace R. Noel and Robinette Noel - Page 26

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          determination that petitioner paid $413,239 in interest charges             
          for 1990.                                                                   
          Legal Expenses                                                              
               In her notice of deficiency, respondent disallowed $19,975             
          in legal expenses claimed as a deduction in 1991.  Since peti-              
          tioner failed to address this issue either at trial or in his               
          brief, we treat this as a concession by petitioner and find for             
               In her notice of deficiency, respondent determined that                
          petitioners were liable for penalties for fraud pursuant to                 
          section 6663.  Prior to trial, respondent conceded that no                  
          amounts were due for fraud.  In her answer to the petition,                 
          respondent asserted an accuracy-related penalty against peti-               
          tioners pursuant to section 6662(a) for their 1990 and 1991                 
          Federal income tax returns.  Since the accuracy-related penalty             
          was first raised in her answer to the petition, respondent has              
          the burden of proof on this issue.                                          
               An accuracy-related penalty equaling 20 percent of the                 
          underpayment may be imposed for any one of five reasons.  Sec.              
          6662(a).  One such reason exists where the taxpayer is negligent            
          in completing his return.  Sec. 6662(b)(1).  Negligence includes            
          "any failure to make a reasonable attempt to comply with the                
          provisions" of the Internal Revenue Code.  Sec. 6662(c).  This              
          Court has defined negligence as the "lack of due care or failure            

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