- 2 -2
Additions to Tax & Penalties
Sec. Sec. Sec. Sec. Sec. Sec. Sec.
Year Deficiency 6651(a)(1) 6653(b)(1)(A) 6653(b)(1)(B) 6653(b)(1) 6661 6663 6662(b)(2)
1986 $44,245 --- $33,184 1 --- $11,061 --- ---
1987 71,567 --- 53,675 1 --- 17,892 --- ---
1988 26,976 --- --- --- $20,232 6,744 --- ---
1989 75,714 $14,892 --- --- --- --- $56,786 ---
1990 44,331 --- --- --- --- --- --- $8,866
1 50 percent of the interest payable under sec. 6601 on the portion of
the underpayment attributable to fraud.
As an alternative to the fraud additions to tax and penalty,
respondent determined additions to tax for negligence or disregard
of rules or regulations pursuant to section 6653(a)(1)(A) and (B)
for 1986 and 1987 and section 6653(a)(1) for 1988 and an accuracy-
related penalty pursuant to section 6662 for 1989.
The 1986 through 1989 deficiencies arose out of unreported
income from petitioner Stanley J. Zaban's (Mr. Zaban) illegal
gambling and bookmaking activities and skimming from his legitimate
business activities, as well as respondent's disallowance of
certain miscellaneous expense deductions for 1987 and 1988. The
1990 deficiency arose out of respondent's disallowance of both a
mortgage interest deduction and a deduction for funds forfeited to
the Baltimore County Police Department after the funds were seized
in the execution of search warrants as proceeds from Mr. Zaban's
illegal activities.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011