- 18 -
indebtedness income at the time of the foreclosures. Nor have
they proven that any of the claimed NOLs were not reduced by
section 108(b)(1) and (b)(2).
For the aforementioned reasons, petitioners did not
substantiate their claimed net operating losses for the taxable
years 1994, 1995, 1996, 1997, 1998, and 1999.
B. Petitioners Failed To Address Claimed Schedule C Expenses
Petitioners reported income and expense for Insurance
Service on Schedule C of the 1994 and 1995 tax returns.
Respondent disallowed certain Schedule C expenses. Petitioners’
briefs fail to address this issue. We conclude that petitioners
have conceded the uncontested items and abandoned this issue.
See Petzoldt v. Commissioner, 92 T.C. 661, 683 (1989); Money v.
Commissioner, 89 T.C. 46, 48 (1987).
C. Late-Filed Return for 1995
Respondent determined that petitioners are liable for an
addition to tax pursuant to section 6651(a)(1) for 1995. Section
6651(a)(1) imposes an addition to tax for failure to file a
return on the date prescribed (determined with regard to any
extension of time for filing), unless the taxpayer can establish
that such failure is due to reasonable cause and not due to
willful neglect. The taxpayer has the burden of proving the
addition is improper. See Rule 142(a); United States v. Boyle,
469 U.S. 241, 245 (1985).
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011