Kermit W. Kinkade - Page 7




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          The amounts of tax withheld from petitioner's wages by Aesthetics           
          in Jewelry, Inc., did not satisfy his obligations to pay                    
          estimated tax in 1993 and 1994.                                             
               At the conclusion of the testimony of respondent's                     
          witnesses, petitioner said that he wanted to submit additional              
          briefs.  The Court warned him that would mean more work for                 
          respondent and the Court, which could result in a larger penalty            
          under section 6673 than if the Court just ruled from the bench.             
          Petitioner replied:  "I am willing to take that risk".  The Court           
          set a briefing schedule, and briefs have been filed by the                  
          parties.                                                                    
               Notwithstanding that this case has been submitted to the               
          Court for decision as described above, the case at docket No.               
          7944-98 was disposed of, on February 18, 1999, by entry of an               
          agreed decision that reduced the amounts of the deficiencies and            
          additions originally determined by respondent.                              
          Discussion                                                                  
               Respondent's determinations in this case were based upon               
          third-party information returns for compensation paid to                    
          petitioner.  Petitioner refused to stipulate the amounts                    
          received.  In the face of petitioner's refusal, respondent, out             
          of an abundance of caution in the face of section 6201(d), proved           
          the amounts received by the testimony and records of petitioner's           
          former employers and their accountants.  Petitioner has not                 





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