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not own the property in order to have standing to contest its
forfeiture; a lesser property interest, such as a possessory
interest, is sufficient for standing." United States v. $38,000.00
in U.S. Currency, 816 F.2d 1538, 1544 (11th Cir. 1987).
Considering all the facts and circumstances herein, we
conclude that petitioners are not required to include in gross
income the $106,000 of forfeited funds. Thus, we hold that
petitioners are not liable for the 1991 deficiency.
Based upon our holding above that petitioners are not liable
for the 1991 deficiency, we need not decide whether Mrs. Arcia was
an innocent spouse in that year. Moreover, as a result of our
holding that petitioners are not liable for the 1991 deficiency, no
part of the section 6651(a)(1) addition to tax is attributable to
the deficiency, and consequently we have no jurisdiction over this
addition. See sec. 6665(b); Meyer v. Commissioner, 97 T.C. 555,
562 (1991). Finally, based upon our holding that no understatement
exists, we need not address whether petitioners are liable for the
section 6662(a) penalty.
To reflect the foregoing,
Decisions will be
entered for petitioners.
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