Douglas Michael Riley - Page 3

                                        - 3 -                                         
               (4)  Whether petitioner is liable for a penalty under                  
          section 6673 for maintaining a frivolous or groundless position             
          in these proceedings.  We hold he is.                                       
                                  FINDINGS OF FACT3                                   
               At the time of filing the petition, petitioner resided in              
          Schaumburg, Illinois.  On December 16, 1996, petitioner filed               
          Forms 1040, U.S. Individual Income Tax Return, for the years 1992           
          through 1995.  Before that date, petitioner had not filed any tax           
          returns for those years.  For the years 1992 through 1995,                  
          petitioner’s tax returns reported adjusted gross income of                  
          $53,029, $60,406, $7,154, and $16,399, respectively.  In                    
          addition, petitioner received unemployment compensation in 1994             
          of $6,110 that was not reported on his return for that year.                
               Each of petitioner’s tax returns for the years in issue                
          included a Schedule A, Itemized Deductions, and a Form 4684,                
          Casualties and Thefts.  On each Form 4684, petitioner claimed a             
          casualty loss for a “nonviable fetus”.  For the years 1992                  
          through 1995, petitioner claimed casualty loss deductions of                
          $50,729, $58,056, $4,704, and $13,899, respectively.  Petitioner            
          claimed that the casualty loss occurred in either 1974 or 1975.4            

               3 Some of the facts have been stipulated, and we incorporate           
          by this reference the parties’ stipulation of facts and the                 
          attached exhibits.                                                          
               4 The returns for 1992 and 1993 state the casualty occurred            
          in June 1974.  The returns for 1994 and 1995 state the casualty             
          occurred in June 1975.  At trial, petitioner testified that the             

Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011