- 21 -
with respect to the FPAA. The computational adjustment changed
petitioner’s claimed DSBS 87-C loss of $16,720 to income of
$4,421, increasing petitioner’s tax liability by $3,918, from
$724 to $4,642. In the notice of deficiency underlying this
case, respondent determined that petitioner is liable for the
section 6662(a) accuracy-related penalty for negligence or
disregard of rules or regulations with respect to the entire
amount of the underpayment resulting from the DSBS 87-C
computational adjustment.
OPINION
I. Evidentiary Issues
As a preliminary matter, we address evidentiary issues
raised by the parties in the stipulations of facts. The parties
reserved objections to a number of the exhibits and paragraphs
contained in the stipulations, all on the grounds of relevancy.
We address here those objections that were not withdrawn by the
parties at trial. Federal Rule of Evidence 4021 provides the
general rule that all relevant evidence is admissible, while
evidence which is not relevant is not admissible. Federal Rule
of Evidence 401 provides that “‘Relevant evidence’ means evidence
having any tendency to make the existence of any fact that is of
consequence to the determination of the action more probable or
1The Federal Rules of Evidence are applicable in this Court
pursuant to sec. 7453 and Rule 143(a).
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011