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Although Mr. Comey reported the interest, dividends, and
proceeds on the Schedules to his 1991 return, he did not include
them in his income on the Form 1040. Instead, he described these
amounts as “nominee distribution[s]”. Mr. Comey reported a total
income of only $5,101 on his Form 1040 for 1991.
In the notice to Mr. Comey for 1991, respondent determined
that the $438 of interest and the $28,056 of dividends were Mr.
Comey’s income. Respondent also determined that $9,396 of the
$9,596 in proceeds was capital gain taxable to Mr. Comey;
respondent allowed Mr. Comey a basis of $200 in one of the stocks
sold.
Mr. Comey admits that he received the dividends described on
his return and in the notice. Moreover, during the course of
this litigation Mr. Comey has neither contested that he received
the interest and proceeds nor asserted that he is entitled to
additional basis in the stock sold. Accordingly, on the basis of
the information set forth on Mr. Comey’s return, Mr. Comey’s
admission, and Mr. Comey’s failure to contest (or to introduce
evidence relating to) these issues, we find that Mr. Comey
received the interest, dividends, and proceeds determined in the
notice, and that capital gains of $9,396 were realized on the
sale of the stock by Mr. Comey in 1991. See Rules 34(b)(4),
142(a), 149(b).
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