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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
Court.
We hold for respondent on all issues.
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