Donald R. Cooley and Cathy A. Cooley - Page 2

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          Liability of Donald R. Cooley                                               
               Year      Deficiency     Sec. 6663(a) Penalties                        
               1989      $2,982.63                $24,584.96                          
               1990      2,617.74                 28,705.73                           
               1991      171.92                   14,035.44                           
               1992      -0-                      21,045.16                           
               1993      3,007.91                 18,888.44                           
          Liability of Cathy A. Cooley                                                
               Year      Deficiency     Sec. 6663(a) Penalties                        
               1989      $2,982.63                -0-                                 
               1990      2,617.74                 -0-                                 
               1991      171.92                   -0-                                 
               1992           -0-                 -0-                                 
               1993      3,007.91                 -0-                                 
               After concessions, the remaining issue to be decided in                
          docket No. 7464-00 is whether petitioner Donald R. Cooley                   
          (hereinafter referred to individually as petitioner) is liable              
          for section 6663(a) penalties for fraud with respect to his 1989,           
          1990, 1991, 1992, and 1993 taxable years.  Respondent did not               
          determine section 6663(a) penalties against petitioner Cathy A.             
          Cooley.  In the case at docket No. 9452-00L, we must decide                 
          whether respondent’s determination to proceed with the collection           
          of Federal income taxes assessed against petitioners for their              
          1989, 1990, 1991, 1992, 1993, and 1996 taxable years was                    
          appropriate.  All section references are to the Internal Revenue            
          Code, as amended, and all Rule references are to the Tax Court              
          Rules of Practice and Procedure.                                            








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