Barry Appel - Page 3

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               Respondent issued petitioner three separate notices of                 
          deficiency, each dated June 6, 2003, determining that petitioner            
          was liable for deficiencies in Federal income taxes and additions           
          to tax in the following amounts for the 1997, 1998, and 1999                
          taxable years:                                                              
                              Additions to Tax                                        
               Year Deficiency Sec. 6651(a)(1)    Sec. 6651(a)(2)     Sec. 6654       
               1997    $30,884$2,905.88      To be determined     $1,371.69           
               1998    29,573 3,044.03      To be determined     934.42               
               1999    11,330 100.00      To be determined        539.47              
               Petitioner filed a timely petition with the Court in which             
          he does not dispute the deficiencies determined, but only                   
          disputes the additions to tax.  Respondent did not file an answer           
          to the petition.1                                                           
               At the time of trial, respondent filed a pretrial memorandum           
          wherein he asserted increased deficiencies and increased                    
          additions to tax.  The parties filed a stipulation of facts                 
          wherein petitioner agreed to the increased deficiencies and                 
          increased additions to tax under section 6654 and also agreed               
          that if the failure to file tax returns for the 1997, 1998, and             
          1999 taxable years was not due to reasonable cause, then the                


               1  Petitioner elected to have his case conducted as a small            
          tax case under the proceedings of sec. 7463.  For the election to           
          be valid, the “amount of the deficiency placed in dispute” may              
          not exceed $50,000 for any one taxable year.  Sec. 7463(a), (e);            
          Kallich v. Commissioner, 89 T.C. 676, 679-680 (1987).  Taking               
          into account petitioner’s concessions in the present case, we               
          concur with his election to conduct his case as a small tax case            
          because the amount placed in dispute for each of the years in               
          issue does not exceed $50,000.                                              




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