- 3 - Respondent determined that petitioner substantially underreported gross receipts during the years in issue based on deposits made to petitioner's bank accounts. After concessions, the issues for decision are whether petitioner has substantiated business deductions claimed on his 1990, 1991, and 1992 Federal income tax returns and whether petitioner is entitled to the benefit of California's community property law in calculating his 1992 income tax liability.1 In order to decide the second issue, we must determine whether respondent's reliance on section 66(b)2 to disregard the community property law of California raises a "new matter" on which respondent bears the burden of proof and, if so, whether respondent has met that burden. Some of the facts have been stipulated and are so found. The first, second, third, and fourth stipulations of fact are incorporated herein by this reference. Petitioner's legal residence was in Campbell, California, at the time he filed his petitions. For convenience, we will combine our findings of fact with our opinion. 1Petitioner does not dispute that the addition to tax and accuracy-related penalties apply to the deficiencies that result from this opinion. 2Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011