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deficiency were issued. Accordingly, the 1987, 1988, and 1989
deficiencies were computed giving petitioner credit for reporting
certain amounts of income. Evidence during trial, however,
established that the documents were never signed by petitioner
and were not valid returns. After determining that petitioner
did not file returns in 1987, 1988, and 1989, however, respondent
contends that petitioner’s deficiencies for the 1987, 1988, and
1989 tax years are greater than those determined in the notices
of deficiency due to petitioner’s failure to file returns for
those years. Thus, respondent seeks increased deficiencies and
additions to tax in greater amounts than those set forth in the
notices of deficiency.
Section 6214(a) provides that this Court shall have
jurisdiction to redetermine the correct amount of the deficiency
even if the amount so redetermined is greater than the amount
determined by the Commissioner in the notice of deficiency if the
Commissioner asserts a claim at or before the hearing or
rehearing. Consistent with the general mandate of section
6214(a), this Court generally will only exercise its jurisdiction
over an increased deficiency where the matter is properly
pleaded. See Estate of Petschek v. Commissioner, 81 T.C. 260,
271-272 (1983), affd. 738 F.2d 67 (2d Cir. 1984); Markwardt v.
Commissioner, 64 T.C. 989, 997 (1975).
Rule 41(b)(1), however, provides that when an issue not
raised in the pleadings is tried with the express or implied
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