Robert B. Keenan, (1998)
T.C. Memo. 1998-388UNITED STATES TAX COURT ROBERT B. KEENAN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 13925-95, 19874-96, Filed November 2, 1998. 15455-97.1 Robert B. Keenan, pro se. Mark A. Weiner, for respondent. MEMORANDUM OPINION JACOBS, Judge: Respondent determined the following deficiencies in, and additions to, petitioner's Federal income taxes: Docket No. 13925-95: Additions to Tax Year Deficiency Sec. 6651(a)(1) Sec. 6654(a) 1992 $19,393 $4,848 $846 Docket No. 19874-96: Additions to Tax Year Deficiency Sec. 6651(a)(1) Sec. 6654(a) 1988 $73,559 $16,120 $4,059 1990 141,784 33,176 8,670 1991 20,822 4,585 1,040 Docket No. 15455-97: Additions to Tax Year Deficiency Sec. 6651(a)(1) Sec. 6654(a) 1989 $70,821 $13,734.00 $2,871.00 1993 16,114 4,028.50 675.11 1994 17,361 4,340.25 894.53 Following concessions by the parties,2 the issues for decision are: (1) Whether assessment of deficiencies and additions to tax for petitioner's 1989 tax year is barred by the expiration of the statutory period of limitations; (2) whether petitioner had taxable income in 1988 in the amount of $205,000 as a result of a purported distribution from his individual retirement account (IRA) at U.S. Trust Co. of N.Y. (USTCNY); (3) whether petitioner had taxable income in 1990 in the amount of $408,623 as a result of a purported distribution from his IRA at USTCNY; (4) whether petitioner is entitled to any losses or deductions in 1992 as a result of a forced Internal Revenue Service (IRS) tax sale of his personal residence; (5) whether petitioner is entitled to $47,418 of ordinary losses in 1993 as a result of forced IRS tax sales of three of his New Mexico properties; (6) whether petitioner is entitled to any other deductible losses during the years in issue; and (7) whether petitioner is liable for the additions to tax pursuant to sections 6651(a)(1) and 6654(a) for all the years in issue.3 All section references are to the Internal Revenue Code in effect for the years in issue. All Rule references are to the Tax Court Rules of Practice and Procedure. Some of the facts have been stipulated, and the stipulations of facts are incorporated in our findings by this reference. Background Petitioner resided in Camarillo, California, at the time he filed his petitions. Petitioner was born on August 25, 1923. He attended college in 1941 and 1942 but did not receive a degree. Subsequently, he worked as a ship fitter in the shipbuilding industry and then enlisted in the Army Air Corps. In 1951, he became a pilot for United Airlines. In 1987, he retired from the airline. Between 1988 and 1993, petitioner flew airplanes for a worldwide delivery firm. Petitioner failed to file Federal tax returns for 1988, 1990, 1991, 1992, 1993, and 1994. For convenience, we have combined our remaining findings of fact and opinion with respect to each issue. Issue 1. Statutory Period of Limitations--1989 Petitioner asserts that he timely filed a 1989 tax return and therefore maintains that the period for assessing a deficiency and additions to tax against him for 1989 expired before the date on which respondent mailed the statutory notice of deficiency (May 12, 1997) with respect to that year. Respondent maintains petitioner did not file a 1989 return. In general, an income tax must be assessed within 3 years after the return was filed. Sec. 6501(a). If no return is filed, the tax may be assessed, or a proceeding in court for the collection of the tax may be begun without assessment, at any time. Sec. 6501(c)(3). The only evidence to support petitioner's assertion that he timely filed a 1989 return is his own testimony. And in this respect, petitioner's testimony was sketchy. Petitioner offered no proof concerning the date of mailing, nor did he testify as to the circumstances attending the purported mailing. Petitioner did not maintain a signed copy of the 1989 return allegedly filed. To refute petitioner's assertion, respondent introduced an IRS certificate of lack of record, dated January 8, 1998, to indicate that petitioner did not file a return for 1989. The record reflects that petitioner...
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