- 2 - the underpayment of tax attributable to negligence. The additions to tax are "affected items" in that they were determined by respondent with reference to a deficiency owing from petitioners as a result of adjustments to partnership items appearing on a 1983 partnership return. The issues for decision are: (1) Whether the statute of limitations prohibits the assessment of the additions to tax; and if it does not, (2) whether part of petitioners' underpayment of tax was due to negligence or intentional disregard of rules or regulations. Some of the facts have been stipulated and are so found. The exhibits received into evidence are incorporated herein by reference. At the time the petition in this case was filed, petitioners were residing in Lanoka Harbor, New Jersey. FINDINGS OF FACT Nicholas Ruggiero (petitioner), a licensed mortgage banker and realtor, is a high school graduate who attended college for a year. His college courses included one course in accounting for one year. Investment Advice Sometime in 1983, petitioners went to a Mr. Dan Desmond (Desmond), an insurance agent, to purchase "some small like life insurance" for petitioner Annette Ruggiero. Desmond also showed petitioners some documents indicating that he was a "certified financial planner". Desmond discussed petitioners' insurancePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011