Nicholas M. Romer - Page 2




                                        - 2 -                                         
          petitioner’s Federal income taxes:2                                         

                                 Addition to Tax     Civil Fraud Penalty              
           Year    Deficiency      Sec. 6654(a)           Sec. 6663                   
           1989     $ 84,472          $5,708              $ 63,354                    
           1990     95,905            6,343               71,929                      
           1991     153,032           8,702               114,774                     

               After concessions by both parties,3 the issues for decision            
          are:  (1) Whether petitioner is entitled to deductions for                  
          aviation-related expenses, not previously claimed on his Federal            
          income tax returns, in excess of amounts agreed to by respondent;           
          (2) whether petitioner is liable for civil fraud penalties under            
          section 6663; and (3) whether the period of assessment for                  
          taxable year 1989 has expired.4                                             


               2 Unless otherwise indicated, all section references are to            
          the Internal Revenue Code in effect during the years at issue,              
          and all Rule references are to the Tax Court Rules of Practice              
          and Procedure.                                                              
               3 As discussed more fully infra, the parties stipulated the            
          amounts of petitioner’s unreported gross income from various                
          sources and certain allowable deductions related thereto.  In               
          addition, respondent concedes that petitioner is entitled to                
          deductions with respect to losses on the sale of two aircraft for           
          taxable years 1989 and 1990 in the respective amounts of $13,195            
          and $6,591.  Respondent also concedes that petitioner is entitled           
          to a math error adjustment, in his favor, to reported Schedule C,           
          Profit or Loss From Business, costs of operations in the amount             
          of $8,000 for taxable year 1989 and rental deductions in the                
          total amount of $5,427 for taxable year 1991.                               
               4  We have jurisdiction to redetermine additions to tax                
          under sec. 6654(a) only if no Federal income tax returns were               
          filed for the years before the Court.  See sec. 6665(b)(2); see             
          also Meyer v. Commissioner, 97 T.C. 555, 562 (1991); Sigel v.               
          Commissioner, T.C. Memo. 2001-138.  Because petitioner filed a              
          Federal income tax return for each year before the Court, the               
                                                             (continued...)           




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011