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petitioner) petitioners are liable for section 6662(a) accuracy-
related penalties for taxable years 1993 and 1995.2
FINDINGS OF FACT
The parties have stipulated some of the facts, which we
incorporate in our findings by this reference. When petitioners
filed their petition, they resided in Kingsport, Tennessee.
During 1992 and 1993, petitioner was a deputy sheriff in the
Sullivan County, Tennessee Sheriff’s Department. Petitioner was
also in business with his father, James E. Bisceglia (Jack), who
controlled the finances of their business activities. Petitioner
had no role in maintaining the business records. Petitioner did
not finish high school, although he subsequently acquired a
graduate equivalent diploma. Jack completed high school and
attended college for 3 weeks. Patricia did not work outside the
home.
2 The 1994 deficiency results from respondent’s
determination that petitioners’ taxable income for 1994 should be
increased by $3,000, owing to an improper carryover from 1993 of
long-term capital losses previously deducted. Petitioners
presented no evidence with regard to this issue and have not
addressed the issue on brief. We treat petitioners’ failure to
argue as, in effect, a concession of this issue. See Rule
151(e)(4) and (5); Sundstrand Corp. & Subs., Inc. v.
Commissioner, 96 T.C. 226, 344 (1991). As discussed below,
however, respondent’s net worth analysis also indicates that
petitioners had a 1994 net loss (without considering the $3,000
adjustment), which would appear to be available to offset the
$3,000 increase in taxable income. The parties have not
addressed this computational matter, which we expect to be taken
into consideration in the Rule 155 computations.
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