- 3 -
are not liable for the section 6663 penalties determined in the
notices of deficiency.
In an Amendment to Answer filed October 5, 1999, respondent
asserted an increased deficiency of $127,070 and an increased
section 6663 penalty of $95,302 against Vortex for FYE 1993.
These cases were consolidated for trial, briefing, and
opinion pursuant to Rule 141(a) because they present common
issues of fact and law. Hereinafter, we refer to the
consolidated cases as this case.
After the parties’ concessions,3 the remaining issues for
decision are:
(1) Whether Vortex is liable for the fraud penalty under
section 6663, or alternatively, for the accuracy-related penalty
under section 6662(a) for FYEs 1991 and 1992;
(2) whether Vortex is liable for the addition to tax for
fraudulent failure to file a tax return under section 6651(f), or
3Petitioner Vortex Products Corp. (Vortex) conceded its
deficiencies at trial. Mr. Zhadanov admitted that he did not pay
tax on his Social Security benefits for 1993. On its FYE 1993
tax return and petition, Vortex claimed that it was entitled to a
deduction for property forfeited by Mr. Zhadanov pursuant to his
plea agreement in United States v. Zhadanov, No. 93-240, 1995
U.S. Dist. Lexis 5707 (E.D. Pa. Apr. 25, 1995). Petitioners did
not present any evidence or make any further argument regarding
this claim. Accordingly, we treat this claim as abandoned and do
not address it herein. See Bradley v. Commissioner, 100 T.C.
367, 370 (1993); Rybak v. Commissioner, 91 T.C. 524, 566 n.19
(1988).
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