- 2 -
1989 Federal income tax, a $178,587 accuracy-related penalty, and
a $2,956,005 fraud penalty.
Respondent has conceded the fraud penalty. The issues
remaining for decision are: (1) Whether the period of
limitations on assessment and collection of petitioner’s income
tax liability for 1989 expired before respondent mailed the
statutory notice of deficiency; (2) whether, under sections
871(b)(1) and 897(a), petitioner was required to report amounts
received in 1989 from his disposition of installment notes that
he received in 1987 and 1988, and if so, in what amount;
(3) whether respondent's determination of a deficiency is in part
arbitrary within the meaning of Helvering v. Taylor, 293 U.S. 507
(1935); and (4) whether petitioner is liable for a penalty under
section 6662(a) on account of negligence or disregard of rules or
regulations. Unless indicated otherwise, all section references
are to the Internal Revenue Code in effect for the year in issue,
and all Rule references are to the Tax Court Rules of Practice
and Procedure.
Because we find for petitioner with respect to the period of
limitations, petitioner has successfully established an
affirmative defense to respondent’s determinations of a
deficiency and penalties, and we need not further address the
adjustments giving rise to respondent’s determination of a
deficiency or the accuracy-related penalty.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011