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Petitioners have supplied us with no evidence with respect
to the Epoch Management, Inc., stock transaction or with respect
to their decision that the gain on the sale of the stock was not
includable in income. Petitioners have the burden of proof on
this issue. Rule 142(a); Welch v. Helvering, 290 U.S. 111
(1933). The fact that this case was submitted fully stipulated
does not alter the burden of proof. Rule 122(b); Alumax Inc. v.
Commissioner, 109 T.C. 133, 160 (1997), affd. __ F.3d __ (11th
Cir., Jan. 21, 1999). Petitioners have failed to establish that
they were not negligent with respect to the underpayments
stemming from the omission of the gain from the sale of the Epoch
Management, Inc., stock. Therefore, we hold that they are liable
for the portions of the accuracy-related penalties related to
that gain.
In keeping with the parties' concessions and our holdings as
set forth above,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011