-2-
6651(a)(2), and $964.76 under section 6654.2 After concessions
by respondent,3 the issues for decision are:
(1) Whether payroll summaries of petitioner’s employer are
admissible into evidence under the Federal Rules of Evidence. We
hold they are;
(2) whether petitioner had $157,553 of unreported income as
respondent determined. We hold petitioner did;
(3) whether petitioner is liable for an addition to tax
under section 6651(a)(1). We hold he is;
(4) whether petitioner is liable for an addition to tax
under section 6654. We hold he is not; and
(5) whether petitioner is liable for a penalty pursuant to
section 6673(a)(1) for instituting this proceeding primarily for
delay and/or advancing in this proceeding frivolous or groundless
claims. We hold he is and impose upon him a penalty of $5,000.
FINDINGS OF FACT
In 2002, petitioner was the chief executive officer of
Efeckta Technologies Corp. (Efeckta). During that year, Efeckta
2 Unless otherwise indicated, section references are to the
applicable versions of the Internal Revenue Code, and Rule
references are to the Tax Court Rules of Practice and Procedure.
Some dollar amounts have been rounded.
3 Respondent concedes that petitioner is not liable for the
addition to tax under sec. 6651(a)(2) and asserts an increase in
the addition to tax under sec. 6651(a)(1) to $7,493 (i.e., the
25-percent maximum addition to tax under that section multiplied
by the difference between the deficiency of $39,890 and withheld
tax of $9,918).
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