Louis E. Peyton - Page 2

                                        - 2 -                                         
                                                        Penalty                       
                     Year          Deficiency       I.R.C. Sec. 6663                  
                    1990           $29,538             $22,154                        
                    1991           32,493              24,370                         
          Unless otherwise indicated, all section references are to the               
          Internal Revenue Code in effect for the years in issue, and all             
          Rule references are to the Tax Court Rules of Practice and                  
          Procedure.  Increased deficiencies and penalties were alleged in            
          respondent’s answer.  After concessions, the issues for decision            
          are:                                                                        
               (1) Whether, and to what extent, petitioner received                   
          unreported income from marijuana sales during 1990 and 1991 and             
          from certain construction activities during 1991;                           
               (2) whether petitioner is liable for self-employment tax for           
          these years; and                                                            
               (3) whether there exist underpayments due to fraud for 1990            
          and 1991 such that (a) petitioner is liable for civil fraud                 
          penalties pursuant to section 6663 and (b) respondent’s proposed            
          deficiency assessments are not barred by the statute of                     
          limitations.                                                                
                                     Background                                       
               For 1990 and for 1991, petitioner and his wife filed a joint           
          Form 1040, U.S. Individual Income Tax Return.  The Forms 1040               
          listed the occupation of petitioner as “construction worker”.               
          Each return reported wages earned by petitioner’s wife.  The 1990           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011