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Accuracy-related penalty
Year Deficiency Sec. 6662(a)
1994 $23,663 $4,732
1995 3,102 620
1996 7,515 1,503
After concessions by John Weller Wood (petitioner),1 the
issues to be decided in these cases are:
1. Whether respondent violated the automatic stay under
section 362 of the Bankruptcy Code2 by auditing petitioner’s
Forms 1040, U.S. Individual Income Tax Return, and issuing
notices of deficiency for 1994, 1995, and 1996;
2. whether petitioner’s capital gain in 1994 on the sale of
a house in Warren, New Jersey, was less than the $90,888
determined by respondent;
1Petitioner concedes that:
1. For 1994, the amount allowable as an itemized deduction
for real estate taxes is $12,835 as determined by respondent,
rather than $24,389 as claimed on Schedule A, Itemized
Deductions, of the Form 1040, U.S. Individual Income Tax Return;
2. he is not entitled to deduct losses of $3,431 for 1994
and $809 for 1995 from IDN Distributorship or $1,578 for 1995
from Home Business Services;
3. for 1996, the amount allowable as a loss from the sale
of a Buick LeSabre is $201 as determined by respondent, rather
than $19,233 as reported on Form 4797, Sales of Business
Property; and
4. the statute of limitations does not bar assessment of
tax for 1994.
2Bankruptcy Code references are to 11 U.S.C. (2000).
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Last modified: May 25, 2011