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amount of $1,476 and an addition to tax pursuant to section
6651(a)(1) in the amount of $701.10.1 For petitioner’s 2001
taxable year, respondent determined a Federal income tax
deficiency in the amount of $10,872 and additions to tax pursuant
to section 6651(a)(1) in the amount of $3,370.32 and pursuant to
section 6654(a) in the amount of $430.23. After concessions,2
the issues for decision are:
(1) Whether petitioner is liable for a deficiency in the
amount of $1,476 for taxable year 1998;
(2) whether petitioner is liable for a deficiency in the
amount of $9,282 for taxable year 2001;
(3) whether petitioner is liable for additions to tax under
sections 6651(a) and 6654(a); and
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code (Code) in effect for the years in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
2 Respondent conceded in his pretrial memorandum the sec.
6651(a)(2) addition to tax for both 1998 and 2001 and sought a
correlative increase in the sec. 6651(a)(1) addition to tax for
both years. The appropriate sec. 6651(a)(1) addition to tax for
both years is to be calculated per Rule 155, as it appears that
the sec. 6651(a)(1) additions to tax as shown on the notice of
deficiency are in error as they exceed the 25-percent aggregate
maximum as permitted by this section.
At trial, respondent stated that the parties agreed that
petitioner is liable for Federal income tax deficiencies in the
amounts of $1,476 and $9,282, for the years 1998 and 2001,
respectively. Petitioner at trial sought to discuss only his
liability for additions to tax; however, his main argument on
brief and in his pretrial memorandum was that he was not liable
for an income tax. Given petitioner’s arguments, the Court
considers both the deficiency and the additions to tax issues.
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