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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' insurance
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