Michael J. Downing and Sandra M. Downing - Page 74

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          with respect to “new matter”, including increased deficiencies.             
          Rule 142(a)(1).                                                             
               Because all of our redeterminations except fraud have been             
          made on the basis of the preponderance of the evidence, it is not           
          necessary to decide which side has the burden of proof as to any            
          item.  See, e.g., Romann v. Commissioner, 111 T.C. 273, 285                 
          (1998); Martin Ice Cream Co. v. Commissioner, 110 T.C. 189, 210             
          n.16 (1998), and cases cited therein.                                       
               Our preponderance-of-the-evidence findings as to omitted               
          Schedule C receipts are shown in the right-most columns of tables           
          7 and 8, supra.  All other adjustments, whether related to                  
          adjustments in the notices of deficiency or other matters, have             
          been resolved by way of concessions or stipulations.                        
               These redeterminations, stipulations, and concessions are to           
          be given effect in the Rule 155 computations and will govern                
          whether any part of the deficiency for either of the years in               
          issue is not due to fraud.                                                  
               To the extent that any part of the deficiency for either of            
          the years in issue is not due to fraud, see part IV of this                 
          opinion.                                                                    
                                   IV.  Negligence                                    
               In the notices of deficiency, respondent determined, in the            
          alternative to the fraud penalties under section 6663, that                 
          Michael is liable for the negligence penalties under section                







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