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Notice of Deficiency
On September 18, 1996, respondent issued a notice of de-
ficiency (notice) to Mr. Henry. In the notice, respondent
determined that Mr. Henry had failed to report as income (1) for
1992 the $150,000 assistance payment that he received from du
Pont in that year and (2) for 1994 the $1,623,203 in payments
that Mr. Henry received from du Pont during that year. Respon-
dent also determined in the notice that Mr. Henry is liable (1)
for additions to tax under 6651(a)(1) for 1992 for failure to
file a tax return and for 1994 for failure to file timely his tax
return and (2) for 1994 for the accuracy-related penalty under
section 6662(a) because of a substantial understatement of income
tax under section 6662(b)(2).
OPINION
Petitioner bears the burden of proving that the determina-
tions in the notice are erroneous. See Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
The $150,000 Assistance Payment
Petitioner received the $150,000 assistance payment from du
Pont in 1992 and did not report that payment as income for that
year. Respondent determined that the $150,000 assistance payment
is includible in petitioner's income for 1992. The parties
stipulated that 70 percent of that payment is allocable to
petitioner and that 30 percent of that payment is allocable to
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