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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...)
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