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MEMORANDUM FINDINGS OF FACT AND OPINION
WHERRY, Judge: Respondent determined a Federal income tax
deficiency for petitioner’s 2002 taxable year in the amount of
$8,716, and additions to tax pursuant to sections 6651(a)(1) and
6654(a) of $2,614.80 and $291.26, respectively.1 The issues for
decision are: (1) Whether petitioner is liable for a deficiency
and additions to tax on unreported income for the 2002 taxable
year; and (2) whether the Court should impose a penalty under
section 6673.
FINDINGS OF FACT
Some of the facts have been deemed stipulated pursuant to
Rule 91(f), and additional facts have been stipulated by the
parties.2 The stipulations, with accompanying exhibits, are
1Unless otherwise indicated, all section references are to
the Internal Revenue Code (Code) in effect for the year in issue,
and all Rule references are to the Tax Court Rules of Practice
and Procedure.
2The Court found petitioner’s objection to the proposed
stipulation of facts, based primarily on Fifth Amendment
assertions, to be meritless. Respondent assured petitioner and
the Court that “To the best of respondent’s knowledge, petitioner
has not currently, nor has he ever been, the subject of any
criminal tax or other criminal investigation by respondent, that
no criminal tax or other criminal investigation of petitioner is
contemplated or anticipated by respondent, and that there are no
indications that respondent ever even considered the imposition
of civil fraud penalties in petitioner’s several cases.” The
Fifth Amendment “protects against real dangers, not remote and
speculative possibilities.” Zicarelli v. N.J. State Commn. of
Investigation, 406 U.S. 472, 478 (1972). Furthermore, “In a
civil tax case, the taxpayer must accept the consequences of
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Last modified: May 25, 2011