Rafael M. and Rosario Gutierrez - Page 2

                                        - 2 -                                         
          6662(a).1  After concessions, we decide the following issues:               
               1.  Whether the burden of proof has been shifted to                    
          respondent by virtue of section 7491(a).  We hold that the burden           
          of proof remains with petitioners.                                          
               2.  Whether petitioners underreported their Schedule C,                
          Profit or Loss From Business, gross receipts by $137,221.  We               
          hold that they did.                                                         
               3.  Whether petitioners are liable for the accuracy-related            
          penalty under section 6662(a).  We hold that they are.                      
                                  FINDINGS OF FACT                                    
               Some facts were stipulated.  The stipulated facts and the              
          accompanying exhibits are incorporated herein by this reference.            
          We find the stipulated facts accordingly.  Petitioners are                  
          married individuals who filed a joint 1998 Federal income tax               
          return.  When the petition was filed, petitioners resided in                
          Palmdale, California.                                                       
               During 1998, petitioner2 owned and operated as a sole                  
          proprietorship a billiard hall named Playa Azul.  Petitioners               
          also owned certain residential rental real estate.  On their 1998           
          tax return, petitioners reported total income of $95,373.  Of               


               1 Section references are to the applicable version of the              
          Internal Revenue Code.  Rule references are to the Tax Court                
          Rules of Practice and Procedure.                                            
               2 When used in a singular form, the term “petitioner” refers           
          to Rafael M. Gutierrez.                                                     





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011