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OPINION1
GERBER, Judge: Respondent determined a deficiency in
petitioner’s 1995 Federal income tax of $26,526, a penalty
pursuant to section 6662(a)2 of $5,305, and a late-filing
addition to tax pursuant to section 6651(a)(1) of $5,305. After
concessions,3 the issue remaining for our consideration is
whether respondent abused his discretion in refusing to grant
consent to petitioner to revoke (modify or change) his 1995
election to expense depreciable business assets under section
179.
Background
Sam H. Patton (petitioner) resided in Houston, Texas, on
October 22, 1999, the date his petition was filed. Petitioner
was self-employed as a welder during the 1995 calendar year.
Petitioner timely filed his 1995 Federal income tax return (1995
return) and reported a business loss in the amount of $36,271 and
1 This case was submitted fully stipulated under Rule 122 of
this Court’s Rules of Practice and Procedure.
2 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable periods under
consideration, and all Rule references are to the Tax Court Rules
of Practice and Procedure.
3 Petitioner concedes that he is liable for the accuracy-
related penalty pursuant to sec. 6662(a) for the 1995 taxable
year. Respondent concedes that petitioner is not liable for an
addition to tax pursuant to sec. 6651(a)(1) for the 1995 taxable
year. Several other agreements and concessions made by the
parties in the stipulation of facts are accepted and should be
reflected in the final disposition of this case.
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Last modified: May 25, 2011