- 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