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Addition to Tax Penalty
Sec. Sec.
Year Deficiency 6651(a)(1) 6662(a)
1989 $63,105 $15,776 $9,203
1990 52,402 13,101 5,650
1991 26,264 6,566 5,156
After concessions by petitioners,1 we must decide the
following issues:
1. Whether petitioners may deduct certain amounts reported
as deductions on their 1989 through 1991 Federal income tax
returns. We hold they may not.
2. Whether petitioners failed to report $60,247 of income
from the sale of cattle in 1989. We hold they did.
3. Whether Ms. Evans is an "innocent spouse" under section
6013 for any of the years. We hold she is not.
Section references are to the Internal Revenue Code in
effect for the subject years. References to Mr. Evans and
Ms. Evans are to Robert C. Evans Jr., and Linda Evans,
respectively. Unless otherwise indicated, Rule references are to
the Tax Court Rules of Practice and Procedure.
1 Petitioners have conceded the correctness of all of
respondent's determinations, but for the deductions and
unreported income discussed herein. Although petitioners'
concession does not mention explicitly the additions to tax and
penalties determined by respondent, we conclude that their
concession extends to these items. Petitioners' counsel did not
list these items as an issue when he set forth the triable issues
in his opening statement at trial, and petitioners did not
present any evidence at trial aimed directly at disproving the
applicability of these items. Nor did petitioners address these
items on brief.
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