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loss carryback to 1996; (g) petitioner David R. Funk received and
failed to include $555,508 in gross income on petitioners’ 1996
return which had been reported on trust income tax returns of
which he was grantor, relating to rental and royalty income; (h)
petitioner Darlene Funk received and failed to include $531,508
in gross income on petitioners’ 1996 return which had been
reported on trust income tax returns of which she was grantor,
relating to rental and royalty income; (i) petitioners are liable
for additional self-employment tax for 1996 of $45,304; and (j)
the trusts created by petitioners are shams, or, in the
alternative are grantor trusts, or, in the alternative that the
income reported by the trusts is taxable to petitioners under the
assignment of income doctrine.
Respondent also determined that for the year 1996
petitioners are liable for an accuracy-related penalty under the
provisions of section 6662, computed on the full deficiency
determined in the notice of deficiency.
When the petition was filed in this case on October 3, 2000,
petitioners resided in Rocklin, California.
In his motion to dismiss, respondent avers, inter alia:
9. * * * Tax Court Rule 34(b)(5) provides that the
petition in a deficiency action shall also contain
“[Clear] and concise lettered statements of the facts
on which petitioner bases the assignments of error,
except with respect to those assignments of error as to
which the burden of proof is on the Commissioner.”
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