Jose M. Vidaurre and Ana Maria Vidaurre - Page 2

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              All 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, unless otherwise                 
          indicated.  All dollar amounts are rounded to the nearest dollar,           
          unless otherwise indicated.  After concessions,1 three issues               
          remain regarding petitioners' tax liability for 1990: (1) Whether           
          petitioners failed to report gain from the sale of property, (2)            
          whether petitioners are subject to an addition to tax under                 
          section 6651(a)(1) for failure to timely file, and (3) whether              
          petitioners are subject to an accuracy-related penalty under                
          section 6662(a).  We hold for respondent on all three issues.               
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          The stipulated facts and accompanying exhibits are incorporated             

          1  For 1990, respondent concedes that petitioners did not receive           
          income of $376,733, and that petitioners are not subject to a               
          self-employment tax of $7,849.  Respondent further concedes that            
          petitioners incurred expenses of $12,395 attributable to the sale           
          of their Fort Lauderdale property, and that their basis in such             
          property is increased by $575.                                              
          For 1990, petitioners concede they are not entitled to deduct               
          compensation expense of $4,800, employment tax of $659, or one-             
          half of the self-employment tax of $3,134.                                  
          For 1991, respondent concedes that petitioners did not receive              
          income of $502,142, that petitioners are entitled to a deduction            
          for personal exemptions of $4,300, and that they are not subject            
          to a self-employment tax of $10,247.  Respondent further concedes           
          that there is no deficiency in income tax due from petitioners              
          for 1991, and that petitioners are not subject to the addition to           
          tax under sec. 6651(a)(1), nor a penalty under sec. 6662(a) for             
          that year.                                                                  
          For 1991, petitioners concede they are not entitled to deduct               
          compensation expense of $9,200, employment tax of $1,298, or one-           
          half of the self-employment tax of $3,968, and that no                      
          overpayment is due them for that year.                                      


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