- 2 - Robert L. Boehm and Winona J. Mowrey Docket No. 14355-97 Penalty Taxable Year Ended Deficiency Sec. 6662 December 31, 1993 $30,974 $6,195 Crestmark Mortgage Services, Inc. Docket No. 14356-97 Addition to Tax Taxable Year Ended Deficiency Sec. 6651 July 31, 1994 $8,781 $2,195 After concessions, the issues for decision are: (1) Whether petitioners Robert L. Boehm and Winona J. Mowrey (the individual petitioners) are entitled to a deduction of $103,056 for a “Real Estate & Mortgage Rate Market Fee” claimed on their Schedule A for taxable year 1993; (2) whether the individual petitioners are liable for section 6662(a) accuracy-related penalties; and (3) whether petitioner Crestmark Mortgage Services, Inc. (Crestmark) is entitled to a deduction for business expenses claimed on its corporate income tax return for the year ended July 31, 1994.1 1 Respondent determined that Crestmark should have included in taxable income interest imputed under sec. 7872 on the unpaid balance of certain loans that Crestmark made to petitioners. Respondent also asserted an addition to tax against Crestmark for failure to file a timely return. Petitioners failed to present any evidence with regard to these issues at trial. On opening brief, petitioners listed both issues but failed to argue them. Respondent dealt with both issues in his brief in answer. Petitioners did not address either issue in their brief in reply. We treat petitioners’ failure to argue as, in effect, a concession of these issues. See Rule 151(e)(4) and (5); Sundstrand Corp. & Subs., Inc. v. Commissioner, 96 T.C. 226, 344 (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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