Irwin I. Skoller and Marsha Skoller - Page 5




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          reporting losses from partnerships other than PRA.  Ms. Skoller             
          signed the return but did not examine or question it.                       
               Petitioners appeared at trial pro se with respect to the               
          business bad debt deduction and accuracy-related penalty issues.            
          However, Ms. Skoller retained counsel with respect to the section           
          6015 relief from joint and several liability issue.  After trial,           
          notwithstanding the small tax case status, the Court directed the           
          parties to file briefs.  See Rule 177(c).  Respondent filed a               
          brief that addressed all of the issues.  Ms. Skoller filed a                
          brief addressing only the section 6015 relief from joint and                
          several liability.  Mr. Skoller did not file a brief.                       
                                     Discussion                                       
               The failure to discuss in brief an issue that was previously           
          raised results in the abandonment of that issue.  See Calcutt v.            
          Commissioner, 84 T.C. 716, 721 (1985).  Mr. Skoller is an                   
          attorney and surely understood the importance of complying with             
          directives from the Court.  Thus, we deem that petitioners have             
          abandoned the business bad debt deduction and section 6662(a)               
          accuracy-related penalty issues.3  Additionally, we deem that Mr.           


               3  We note, however, that it is clear that, to the extent              
          Mr. Skoller advanced funds to PRA (an issue that we need not                
          decide), the advance was a contribution to capital and not a bona           
          fide debt.  “A * * * contribution to capital shall not be                   
          considered a debt for purposes of section 166.”  Sec. 1.166-1(c),           
          Income Tax Regs.  Mr. Skoller testified that “the money was given           
          to Princeton Residential Associates.  It was part of my capital             
          contribution at that time.”  Furthermore, it appears that PRA may           
                                                             (continued...)           





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