- 2 -
Accuracy-Related Penalty
Sec.
Year Deficiency 6662(a)
1992 $17,970 $3,594
1993 167,629 33,526
Following the parties' concessions, we must decide:
1. Whether section 104(a)(2) excludes from Walter E. Hess's
(Mr. Hess) 1993 gross income $425,000 of settlement proceeds he
received during that year. We hold it does not.
2. Whether Mr. Hess may deduct for 1993 a $170,040
long-term capital loss on his separation from employment with
L.G. Balfour Co. (Balfour). We hold he may not.
3. Whether Mr. Hess is liable for the accuracy-related
penalty determined by respondent under section 6662(a) for 1993.
We hold he is.
Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years in issue. Rule
references are to the Tax Court Rules of Practice and Procedure.
Dollar amounts are rounded to the nearest dollar. Although
Helen L. Hess (Mrs. Hess) is a copetitioner, for simplicity and
clarity, we refer to Mr. Hess as the sole petitioner.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulations of fact and the exhibits submitted therewith are
incorporated herein by this reference. Petitioner and Mrs. Hess
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