- 19 - when the Fitch Property was conveyed, and therefore the gain realized was not taxable. Nothing in the record supports this fabrication. The facts in this case show that the Fitch Property was conveyed to AAL by the Partnership, not the LLC, and as noted previously, the Certificate of Limited Liability Company of the LLC was not even filed in the Office of the Secretary of State (Delaware) until September 19, 1994, at least 4 months after the Fitch Property had been conveyed by the Partnership to AAL. We conclude that petitioners have failed to meet their burden of proving that they acted with reasonable cause and in good faith. Furthermore, based upon our holding on the first issue in this case and concessions by petitioners, petitioners owe taxes for 1994 and 1995 well in excess of the level constituting a substantial understatement. We therefore sustain respondent’s determination that petitioners are liable for the accuracy-related penalty. In reaching our holdings herein, we have considered all arguments made, and to the extent not mentioned above we find them to be irrelevant, moot, or without merit. All of petitioners’ objections on the ground of relevancy contained in the Stipulation of Facts have been considered and are denied. Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Last modified: May 25, 2011