- 5 - Petitioner was a lawyer for 20 years. He was disbarred on October 23, 1991, as a result of his convictions. Petitioner paid no taxes and filed no return for the audit year before the issuance of the notice. The additions to gross income set forth in the notice were reported on information returns (Forms 1099 or, in the case of Merrill Lynch Pierce Fenner & Smith, Inc. (Merrill Lynch), an equivalent tax reporting statement) as follows: Payor Classification Amount Merrill Lynch Short-term capital gain1 $27,573 Bank of New York Short-term capital gain1 2,802 First Investors Tax Interest 259 Exempt Fund Sovran Bank, NA Interest 138 Commonwealth Savings Interest 5 & Loan Merrill Lynch Dividends 540 Raytheon Co. Dividends 8 National Bank of Gross distribution from 9,022 Washington retirement account Total 40,347 1 The $27,573 was reported by Merrill Lynch as “gross1 proceeds from dispositions of securities”. Although the information return from Bank of New York is not in evidence, we assume it does the same with respect to the $2,802. On the 1988 return, petitioner reported both amounts as short-term capital gain; i.e., he failed to report other than a zero basis for either the IBM stock sold by Merrill Lynch or the security sold by Bank of New York. On or about May 14, 1997, more than 2 years after the notice was issued, petitioner filed the 1988 return. On Schedules B,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