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Penalties1
Year Deficiency sec. 6663(a)
1993 $40,980 $29,677
1994 452 –-
1995 46,543 34,824
1 The notice of deficiency states that in the
event it is held that all or part of the underpayment
in tax required to be shown on the 1993 and 1995
returns is not due to fraud, the sec. 6662(a) accuracy-
related penalty applies.
In his Answer to Amended Petition, respondent asserts that,
pursuant to section 6214(a), the proposed deficiency for 1993
should be increased to $42,836 and the penalty for that year
should be increased to $32,127. Respondent also concedes that
the deficiencies for 1995 should be reduced to $45,784 and that
the penalties for that year should be reduced to $34,338. On
brief, respondent concedes that petitioner Patricia Bisceglia
(Patricia), who filed joint Federal income tax returns with her
husband for the years in issue, is not liable for the section
6663(a) fraud penalty for taxable years 1993 and 1995 but
contends that she is liable for section 6662(a) accuracy-related
penalties for those years.
After concessions, the issues for decision are: (1) Whether
petitioners realized net income for taxable years 1993 and 1995
in excess of amounts reported on their returns; (2) whether
petitioner Monty Bisceglia (petitioner) is liable for the fraud
penalty under section 6663 for taxable years 1993 and 1995; and
(3) whether (in the alternative to the fraud penalty for
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Last modified: May 25, 2011