- 2 -
section 66631 for 1993, 1994, and 1995 of $22,410, $61,488.75,
and $33,916.50, respectively. The issues for decision are:
(1) Did respondent issue the notice of deficiency before
the expiration of the period of limitations on assessment? We
hold that petitioners filed false or fraudulent returns with the
intent to evade tax for 1993, 1994, and 1995, and consequently
there is no limitation on assessment under section 6501(c)(1);
(2) did petitioners receive $222,735 in unreported income
from HRDC Construction (HRDC), a partnership owned 100 percent by
petitioners, in 1994? We hold that they did;
(3) are petitioners entitled to deductions in excess of
those allowed by respondent in the notice of deficiency? We hold
that they are not;
(4) are unreported bank deposits of $30,953.94 in 1995
taxable to petitioners? We hold that they are;
(5) is petitioner Dorene Payne (Mrs. Payne) entitled to
innocent spouse relief under section 6015? We hold that she is
not; and
(6) are petitioners liable for the fraud penalty under
section 6663? We hold that they are liable for the fraud penalty
with respect to the unreported income they received from HRDC,
but not with respect to their unreported bank deposit income.
1Unless otherwise indicated, 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.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011