Kenneth A. Weiner - Page 2

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          deemed admitted by reason of petitioner's failure to respond to             
          requests for admission served by respondent under Rule 90.                  
          Respondent determined deficiencies for 1984 and 1985 based on               
          petitioner's failure to report gross income received from his               
          participation in an investment scheme.  The resulting                       
          deficiencies in income tax and additions to tax are as follows:             
                                   Additions to Tax1                                  
          Year      Deficiency     Sec. 6653(b)(1)     Sec. 6653(b)(2)                
          1984      $547,778       $273,889            50% of the                     
                                                       interest due                   
                                                       on $547,778                    
          1985      2953,134       476,567             50% of the                     
                                                       interest due                   
                                                       on $953,134                    
               1In the event that the fraud addition to tax is not                    
          sustained, respondent asserted in the alternative the negligence            
          addition to tax pursuant to sec. 6653(a).                                   
               2The face of the notice of deficiency incorrectly lists the            
          deficiency for 1985 as $975,113.  The summary contained therein,            
          however, correctly lists the deficiency as $953,134.                        
               Based on matters deemed admitted, respondent claims that               
          there is no genuine issue of material fact as to either                     
          petitioner's liability for deficiencies in his 1984 and 1985                
          income tax or petitioner's liability for the fraud additions                
          under section 6653(b)(1) and (2).  The Court ordered petitioner             
          to respond to respondent's motion on or before June 20, 1997.               
          Petitioner failed to do so.  Petitioner was incarcerated in the             
          Federal Penitentiary in Bastrop, Texas, when he petitioned the              
               We hold for respondent on all issues.                                  

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