- 2 - MEMORANDUM FINDINGS OF FACT AND OPINION HALPERN, Judge: By notice of deficiency dated January 22, 2001 (the notice of deficiency), respondent determined deficiencies in, and penalties with respect to, petitioners’ Federal income tax as follows: Penalty Year Deficiency (Sec. 6662(a)) 1994 $25,310 $5,062.00 1995 3,749 -0- 1996 19,408 3,881.60 Petitioners timely filed a petition for redetermination. The issues for decision are whether petitioners: (1) Properly characterized gains and losses (i.e., as ordinary rather than capital) attributable to petitioner Herman Welter’s commodities trading activities during the years at issue and (2) are liable for the penalties determined by respondent.1 Unless otherwise noted, all section references are to the Internal Revenue Code in effect for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. 1 The parties stipulated that petitioners improperly omitted from income in 1995 and 1996 amounts attributable to a sec. 481 adjustment resulting from a prior audit. The parties further stipulated: (1) Petitioners are entitled to increased standard deductions for 1995 and 1996, and (2) respondent’s adjustments relating to a net operating loss deduction for 1995, self-employment income for 1995 and 1996, and Social Security benefits for 1994, 1995, and 1996 are computational. We need not further discuss those issues.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011