Domer L. Ishler, (2002)

Docket Number: 13468-99, 13469-99

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Domer L. Ishler, (2002)

T.C. Memo. 2002-79

UNITED STATES TAX COURT DOMER L. ISHLER, Petitioner v.

COMMISSIONER OF INTERNAL REVENUE, Respondent 20TH CENTURY MARKETING, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 13468-99, 13469-99.1 Filed March 28, 2002.

Michael K. Wisner, David E. McGehee, and D. Ashley Jones, for petitioners.

Marshall R. Jones, for respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION COLVIN, Judge: Respondent determined deficiencies in petitioners' Federal income tax and additions to tax as follows:

Domer L. Ishler Additions to tax Year Deficiency Sec. 6653(b)(1)(A) Sec. 6653(b)(1)(B) Sec. 6661 1987 $112,227 $84,170 1 $28,057 1988 396,659 297,494 -- 99,165

After concessions,2 the issues for decision are: 1. Whether TCM had unreported income of $307,696 in 1987 and whether petitioner had unreported income of $308,723 in 1987 and $1,421,218 in 1988. We hold that they did. 2. Whether petitioner is liable for the addition to tax for fraud under section 6653(b) for 1987 and 1988 and whether TCM is liable for fraud for 1987. We hold that petitioner is and that TCM is not. 3. Whether the statute of limitations bars assessment of tax for 1987 and 1988. We hold that it does not. 4. Whether petitioner is liable for the addition to tax under section 6661 for substantial understatement for 1987 and 1988, and whether TCM is liable for the section 6661 addition to tax for 1987. We hold that they are.

Unless otherwise indicated, section references are to the Internal Revenue Code in effect for the years in issue. Unless otherwise indicated, Rule references are to the Tax Court Rules of Practice and Procedure.

FINDINGS OF FACT Some of the facts have been stipulated and are so found. A. Petitioners 1. Domer Ishler Petitioner lived in Huntsville, Alabama, when he filed his petition in this case. He graduated from high school and completed 6 months of trade school in electronics.

Lela Ishler is petitioner's mother, and her husband is D. Marvin Ishler. Marvin M. Ishler is petitioner's brother. Traci Ishler is petitioner's daughter. Joyce Ishler Eller (Eller) is petitioner's former wife. Melonee Hudson (Hudson) was petitioner's niece. She died in July 1994.

During the 1980s, petitioner conducted business a...

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