- 16 -
See Starr v. Commissioner, 267 F.2d 148, 149 (7th Cir. 1959),
affg. on this issue and others and revg. and remanding on another
issue T.C. Memo. 1958-50. We conclude that DRD’s real estate
rental income earned and losses incurred during the years in
issue were within the scope of the partnership.
D. Whether Tax Years 1992 and 1993 Should Be Dismissed From
This Case as Moot
Petitioners contend that tax years 1992 and 1993 should be
dismissed from this case as moot on the grounds that Trisch filed
amended returns for DRD for those years in which he reported that
all DRD income, deductions, losses, and credits were attributable
to him. We disagree. DRD’s amended returns do not convince us
to disregard the rest of the record in this case, which shows
that DRD had real estate rental income earned and losses incurred
in 1992 and 1993 within the scope of the partnership. See par.
II-C, above.
E. Whether Petitioners Are Liable for the Accuracy-Related
Penalty
Respondent contends that petitioners are liable for the
accuracy-related penalty under section 6662 for each year. We
disagree. Petitioners filed amended returns based on the
Schedules K-1 that they belatedly received each year from DRD.
There was nothing in the schedules that reasonably alerted them
to the fact that the schedules were based on understated income
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