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income by his failure to include or report the $135,550 on his
1989 income tax return. See sec. 6501(e). On this point, Edgar
argues that in order for the 6-year period of section 6501(e) to
apply, respondent must prove that the $135,550 is taxable. In
accord with our above holding, the 6-year assessment period was
applicable at the time Edgar first consented to extend the
assessment period for his 1989 tax year, and accordingly the
assessment period had not expired at the time respondent mailed
the notice of deficiency for Edgar’s 1989 taxable year.
Whether Edgar Is Entitled to a $20,000 Deduction for Attorney’s
Fees
Edgar claims that he is entitled to a $20,000 deduction for
attorney’s fees that he alleges were paid in connection with the
settlement of his father’s financial affairs and/or estate.
Respondent counters that Edgar has not substantiated that he paid
an attorney $20,000. There is evidence that Magna Carta paid the
attorney $40,000 during 1989 but no showing by Edgar that one-
half of that payment was for his direct benefit or on his behalf.
If it was, there would be some question of whether Edgar would
also have an additional $20,000 of income that has not been
reported. In addition, Edgar has not provided the Court with a
legal theory under which the amount would be deductible in
arriving at adjusted gross income or taxable income. On this
record, we find that Edgar has failed to substantiate his
entitlement to a deduction under section 162 or 212.
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Last modified: May 25, 2011