- 3 - In February 1989, petitioner pleaded guilty to trafficking in marijuana and other related offenses. He received a prison term of 7 to 25 years and was ordered to forfeit 141 of his rental properties. See Thrower v. Anderson, No. 98AP-1152 (Ohio Ct. App. May 18, 1999); State v. Thrower, No. 14967 (Ohio Ct. App. July 31, 1991); State v. Thrower, 575 N.E.2d 863, 876-877, 879 (Ohio Ct. App. 1989). For 1988, petitioner filed no Federal income tax return and paid no estimated taxes. OPINION 1. Unreported Rental Income In the notice of deficiency, respondent determined that in 1988 petitioner had $217,460 of unreported net rental income, representing $543,851 of gross rental income reduced by $98,501 of depreciation expense and $227,890 of other rental expenses. In his petition, petitioner affirmatively acceded to these determinations.3 At trial, petitioner offered into evidence a photocopy of a 1988 Form 1040, U.S. Individual Income Tax Return (the purported return), which he contended was “my 1988 tax 3 The petition states: “I do not contest the rental income and expenses.” Moreover, petitioner failed to respond to respondent’s requests for admissions, which set forth the same amounts of gross receipts, expenses, and depreciation attributable to his rental properties as contained in the notice of deficiency. Pursuant to Rule 90(c), petitioner is deemed to have admitted these matters. See Freedson v. Commissioner, 65 T.C. 333, 335-336 (1975), affd. 565 F.2d 954 (5th Cir. 1978).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