- 2 -
Penalty
Year Deficiency Sec. 6662(a)
1993 $49,843 $9,969
1995 9,567 1,913
Unless 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.
After concessions,1 the issues for decision are:
1. Whether the notice of deficiency inadequately described
the basis for respondent’s determinations, so as to justify
placing the burden of proof on respondent.
2. Whether advances that petitioner husband (hereinafter
petitioner) made to a related corporation are deductible as bad
debts under section 166.
3. Whether advances that petitioner made to a related
corporation are deductible as ordinary losses under section 165.2
1 Respondent concedes that petitioners’ losses from the
advances at issue are long-term capital losses that are
deductible under sec. 165(f), subject to the limitations of sec.
1211. Petitioners have failed to address, either at trial or on
brief, respondent’s assertion of sec. 6662 accuracy-related
penalties. We treat their failure to argue as, in effect, a
concession of this issue. See Rule 151(e)(4) and (5); Sundstrand
Corp. v. Commissioner, 96 T.C. 226, 344 (1991).
2 Respondent’s disallowance of petitioners’ net operating
loss carryover deduction for 1995 appears to be a computational
matter, depending entirely on our resolution of the proper income
tax treatment of petitioner’s advances to the related
corporation.
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