Richard L. and Kelly D. Robson - Page 20




                                       - 20 -                                         
               As further support for respondent’s position that York did             
          not acquire the loans to shareholder accounts, we note that                 
          “Loans to stockholder” of $111,484 are listed as an asset at                
          yearend on both the Schedules L filed with Mid-Nebraska’s tax               
          returns for 1992 and 1993.  Statements on a Federal tax return              
          are admissions under rule 801(d)(2) of the Federal Rules of                 
          Evidence and will not be overcome without cogent evidence that              
          they are wrong.  See, e.g., Waring v. Commissioner, 412 F.2d 800,           
          801 (3d Cir. 1969) (“The valuation [of license agreement] given             
          in the return was an admission, and although it is not                      
          conclusive, the Tax Court was entitled to judge its weight as               
          evidence.”), affg. per curiam T.C. Memo. 1968-126; United States            
          v. Hornstein, 176 F.2d 217, 220 (7th Cir. 1949) (cost of goods as           
          shown on return were chargeable to taxpayer until he offered                
          credible evidence that figures were in error); Estate of Hall v.            
          Commissioner, 92 T.C. 312, 337-338 (1989) (values of stock                  
          reported on estate tax return are admission by taxpayer, and                
          lower value could not be substituted without cogent proof that              
          reported values were erroneous); Lare v. Commissioner, 62 T.C.              
          739, 750 (1974) (“Statements made in a tax return signed by a               
          taxpayer may be treated as admissions.”), affd. without published           
          opinion 521 F.2d 1399 (3d Cir. 1975).  Petitioners have failed to           










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