Richard P. Console - Page 2




                                        - 2 -                                         
          Accuracy-                                                                   
          Related                                                                     
          Additions to Tax                   Penalty                                  
          Year   Deficiency  Sec. 6653(b)(1)(A)  Sec. 6661(a)  Sec. 6653(b)    Sec. 6663
          1986    $104,596        1$78,447         $26,149         ––-             ---
          1987      56,197        1 42,148          14,049         —–-             ---
          1988      50,951           —--            12,737       $38,213           ---
          1989      64,805           ---             ---           ---           $48,604
          1992       8,130           —--             —--           —--             ---
                    1Additionally, sec. 6653(b)(1)(B) imposes an addition of 50       
               percent of the interest due on the deficiency.                         
                                                                                     
               Following a trial at which neither party presented any                 
          substantive evidence relating to respondent’s determinations, we            
          must decide whether petitioner is liable for those amounts.  We             
          hold he is.  Section references are to the Internal Revenue Code            
          in effect for the subject years, and Rule references are to the             
          Tax Court Rules of Practice and Procedure.  Petitioner resided in           
          New Jersey when his petition was filed.                                     
                                     Background                                       
               On November 21, 2000, respondent moved the Court under Rule            
          91(f) to issue an order directing petitioner to show cause why              
          proposed facts in evidence should not be accepted as established.           
          Three days later, the Court granted respondent’s motion and                 
          ordered petitioner to file with the Court by December 8, 2000, a            
          response under Rule 91(f)(2) showing why the matters set forth in           
          respondent’s motion papers should not be deemed admitted for                
          purposes of this case.  After petitioner failed to respond to the           
          substance of our order, we ordered that the facts and evidence              
          set forth in respondent’s motion papers be deemed established for           
          purposes of this case.                                                      





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