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Respondent determined a deficiency in petitioners’ Federal
income tax of $27,414 and a section 6662(a) penalty of $5,405 for
their 2003 taxable year. After concessions1 by petitioner Daniel
J. Roderick (petitioner),2 the issues we must decide are whether
petitioner must include in income for 2003 the entire amount of
nonemployee compensation he received from GMAC Mortgage
Corporation (GMAC) or whether a portion of that income belonged
to another taxpayer who worked with petitioner, and whether
petitioner is entitled to deduct certain nonreimbursed business
expenses.
Background
Some of the facts have been stipulated. The parties’
stipulation of facts is incorporated in this opinion by
1Petitioner Daniel J. Roderick (petitioner) concedes that he
received compensation from GMAC Mortgage Corporation (GMAC) and
pension and annuity income from Fidelity Investments and that he
should have reported both receipts on petitioners’ 2003 tax
return. Petitioner’s concessions support respondent’s position
that the sec. 6662(a) penalty is appropriate. Moreover,
petitioners did not assign error to the sec. 6662(a) penalty and
have therefore conceded the issue. See Rule 34(b)(4); Funk v.
Commissioner, 123 T.C. 213, 215 (2004). Accordingly, petitioners
are liable for the sec. 6662(a) penalty.
2Petitioners are now divorced, and petitioner Joyce A.
Roderick did not appear at trial on Oct. 30, 2006, in Atlanta,
Georgia. Petitioner and respondent sought to enter a stipulation
of facts signed by petitioner and respondent but not by
petitioner Joyce A. Roderick. By order dated Oct. 30, 2006, we
dismissed the instant case for lack of prosecution insofar as it
relates to petitioner Joyce A. Roderick. Respondent and
petitioner read the stipulation of facts into the record.
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