Larry A. and Kathleen T. Monico - Page 4

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                  only being payable on July 1, 1988, and each July 1                                   
                  thereafter until July 1, 1993, when the entire                                        
                  principal balance together with accrued interest shall                                
                  be due and payable.                                                                   
            Notwithstanding that it was executed on February 14, 1989, the                              
            purchase agreement recites that it was made and entered into as                             
            of November 1, 1987.                                                                        
                  In 1990, 1991, and 1992, petitioners received payments from                           
            Chef-Reddy (the Chef-Reddy payments) in the amounts of $283,874,                            
            $165,956, and $64,719, respectively, which payments petitioners                             
            did not report on their income tax returns for those years.                                 
                  Respondent determined deficiencies in petitioners' Federal                            
            income taxes for 1990, 1991, and 1992 on the grounds, in part,                              
            that the Chef-Reddy payments were items of gross income                                     
            improperly omitted from gross income by petitioners.                                        
                  Petitioners contend that the Chef-Reddy payments are not                              
            items of gross income because they represent a return of capital;                           
            i.e., the Chef-Reddy payments represent amounts that, previously,                           
            should have been taken into income.Discussion1                                              

            1     Rule 151(e) deals with the form and content of briefs, and                            
            provides as follows:                                                                        
                        (e)  Form and Content:  All briefs shall contain                                
                  the following in the order indicated:                                                 
                        (1)  On the first page, a table of contents with                                
                  page references, followed by a list of all citations                                  
                  arranged alphabetically as to cited cases and stating                                 
                  the pages in the brief at which cited.  Citations shall                               
                  be in italics when printed and underscored when                                       
                  typewritten.                                                                          
                        (2)  A statement of the nature of the controversy,                              
                                                                          (continued...)                




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