- 7 - Commissioner, 91 T.C. 1049, 1056 (1988), affd. 926 F.2d 1470 (6th Cir. 1991). The action or nonaction on the part of a taxpayer that constitutes sufficient grounds to apply Rule 123(a) in proceedings before us is a matter within this Court's discretion. Id. Petitioner's failure to proceed with prosecution of his case, despite the Court's warning in its notice setting this case for trial, its pretrial order, and the Order to Show Cause dated May 15, 1998, constitutes sufficient grounds for the entry of a default judgment against him. Accordingly, we shall sustain respondent's determinations as to the deficiencies and the additions to tax pursuant to sections 6651(a)(1) and 6654 on the ground that petitioner either defaulted or simply failed to carry his burden of proof.2 See, e.g., Smith v. Commissioner, supra at 1052. Respondent also determined that petitioner is liable for an addition to tax for fraudulent failure to file for 1991 and the fraud penalty for 1992 and 1993. Entry of a default decision as to the addition to tax for fraud and the fraud penalty is appropriate if the pleadings set forth sufficient facts which 2 We note that, among other things, respondent determined the following: (1) Petitioner is entitled to $97,710.12 for cost of goods sold in 1991; (2) petitioner is entitled to an additional $19,881.06 and $1,041.16 for cost of goods sold in 1992 and 1993, respectively; and (3) petitioner is entitled to deduct $11,700, $22,360, and $22,360 for subcontract and employee expenses in 1991, 1992, and 1993, respectively.Page: Previous 1 2 3 4 5 6 7 8 9 Next
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