John R. Boone, Jr., (1997)
Linked as:
Extract
John R. Boone, Jr., (1997)
T.C. Memo. 1997-471
UNITED STATES TAX COURT JOHN R. BOONE, JR., Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 13909-96. Filed October 15, 1997.On the facts, Held: R has proven, by a preponderance of the evidence, that P improperly omitted a substantial amount of gross income from his Federal tax returns for 1989 and 1990 within the meaning of sec. 6501(e)(1)(A), I.R.C., such that R is not barred from assessing deficiencies for those years by the 3-year statute of limitations of sec. 6501(a), I.R.C. Held, further, P is not liable for self-employment taxes pursuant to sec. 1401, I.R.C., on gross income omitted from his returns for 1989 and 1990. Held, further, accuracy-related penalties for negligence pursuant to sec. 6662(a), I.R.C., for 1989 and 1990 are sustained.David W. Gray, for petitioner. Aubrey C. Brown, for respondent.MEMORANDUM FINDINGS OF FACT AND OPINION NIMS, Judge: Respondent determined the following deficiencies and accuracy-related penalties with respect to the Federal income tax of petitioner, John R. Boone, Jr., for the taxable years 1989 and 1990:Penalties Year Deficiency Sec. 6662(a) 1989 $11,775 $2,415 1990 32,389 6,478 Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years at issue. All Rule references are to the Tax Court Rules of Practice and Procedure.After concessions by petitioner, the issues remaining for decision are: (1) Whether respondent is barred by the expiration of the 3-year period of limitations of section 6501(a) from assessing and collecting deficiencies in petitioner's Federal income tax for 1989 and 1990; and, if respondent is not so barred; (2) whether petitioner understated his income tax in the amounts determined by respondent in the notice of deficiency for the years in issue; and (3) whether unreported bank deposits and cash expenditures made by petitioner in 1989 and 1990 constitute self-employment income subject to tax under section 1401 for those years; and (4) whether petitioner is liable for accuracy-related penalties for negligence pursuant to section 6662(a) for 1989 and 1990.Some of the facts have been stipulated and are found accordingly. The stipulation of facts and attached exhibits are incorporated herein by this reference. At the time petitioner filed his petition he resided in Louisville, Kentucky.FINDINGS OF FACT A. Petitioner's Upbringing and Relationship With His Great-Grandfather Eugene Oscar Walker (Walker) was petitioner's great-grandfather. Walker married Julia, and they were the parents of Jean Walker Boone (Jean), petitioner's grandmother. After Julia died, Walker married Julia's sister...See the full content of this document
Sponsored links
