Reginald Maurice Wise and Shannon Rae Wise - Page 2

                                        - 2 -                                          
                                              Additions to Tax                         
               Petitioners   Deficiency       Sec. 6653(a)   Sec. 6661                 
               Reginald and    $33,380        $1,669         $8,345                    
               Shannon Wise1                                                           
               Henry Eicher2     9,909        495            2,477                     
               On December 14, 1995, petitioner Henry Victor Eicher                    
          (Eicher) filed a Notice of Agreement to be Bound by the decision             
          in the Wises' case.  Most, but not all, of the issues in Eicher's            
          case are the same as the issues in the Wises' case.  We accepted             
          Eicher's agreement to be bound, but, because Eicher has the                  
          burden of proof on all issues in dispute, Rule 142(a), and                   
          because Eicher did not produce evidence, see Rule 149, we deemed             
          Eicher to have conceded all issues in his case that are not in               
          common with issues in the Wises' case.3                                      
               At all relevant times, Reginald Maurice Wise (Wise) and                 
          Eicher controlled four pass-through entities, Wesco and Hersco,              
          which were partnerships, and Wesco Realty, Inc. (WRI) and Intent,            
          Inc. (Intent), which were S corporations.  Several of the issues             


               1Respondent determined that the Wises are allowed a general             
          business credit of $2,675 on their 1988 joint tax return.                    
               2Respondent allowed credits in the following amounts on                 
          Henry Eicher's 1988 tax return:  (a) General business credit,                
          $4,394; (b) credit for prior year minimum tax, $1,375; and (c)               
          foreign tax credit, $19,515.                                                 
               3We deem Eicher to have conceded the passive activity loss              
          limitation issue and the addition to tax for negligence.                     
          Respondent argues that the guaranteed payment issue only relates             
          to Eicher and is conceded.  However, the guaranteed payment also             
          affects Wise, and we do not deem it to be conceded.                          




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