James R. and Myrtice L. Peacock - Page 2

                                        - 2 -                                         
          $26,560, $8,066, and $19,598.  Respondent also determined for               
          1997 a $24,498 addition to tax under section 6651(a)(1).                    
               Following concessions, we must decide:                                 
               1.  Whether petitioners’ deep-sea tournament fishing                   
          activity (fishing activity) was an “activity not engaged in for             
          profit” under section 183.  We hold it was.                                 
               2.  Whether petitioners may deduct a certain bad debt.  We             
          hold they may not.                                                          
               3.  Whether petitioners are liable for the accuracy-related            
          penalties and the addition to tax.  We hold they are.                       
               Unless otherwise indicated, section references are to the              
          applicable versions of the Internal Revenue Code.  Rule                     
          references are to the Tax Court Rules of Practice and Procedure.            
          Dollar amounts are rounded.                                                 
                                  FINDINGS OF FACT1                                   
               The parties have stipulated some of the facts.  We                     
          incorporate herein by this reference the parties’ stipulation of            
          facts and the exhibits submitted therewith.  We find the                    

               1 The Court directed each party to file an opening brief and           
          an answering brief, the latter limited to making any objection to           
          the opposing party’s proposed findings of fact.  Petitioners have           
          not filed an answering brief.  We conclude they have conceded               
          respondent’s proposed findings as correct except to the extent              
          that their opening brief contains proposed findings inconsistent            
          therewith.  Morgan v. Commissioner, T.C. Memo. 2000-231, affd. 23           
          Fed. Appx. 813 (9th Cir. 2001); Fankhanel v. Commissioner, T.C.             
          Memo. 1998-403, affd. without published opinion 205 F.3d 1333               
          (4th Cir. 2000).                                                            

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