COOPERBERG v. Commissioner
| Decision Date | 21 March 1979 |
| Docket Number | Docket No. 7669-74. |
| Citation | 1979 TC Memo 102,38 TCM (CCH) 473 |
| Parties | Martin Cooperberg and Doris Cooperberg v. Commissioner. |
| Court | U.S. Tax Court |
David A. Pravda, for the petitioners. Larry Kars, for the respondent.
Memorandum Findings of Fact and Opinion
Respondent determined deficiencies in petitioners' Federal income tax and additions to tax as follows:
Martin Cooperberg
Year Deficiency Sec. 6653(b)1
1968 ...... $31,405.87 $15,702.94
1969 ...... 10,389.32 5,194.66
The issues for decision are:
(1) Whether respondent sent the statutory notice of deficiency to an address other than Martin Cooperberg's last known address with the result that we lack jurisdiction over part of this case;
(2) Whether petitioners were deprived of due process in that respondent did not give them a hearing before assessment;
(3) Whether petitioners understated their income for the years in issue;
(4) Whether any portion of the underpayment in tax was due to fraud on the part of Martin Cooperberg;
(5) Whether the statute of limitations bars assessment and collection of the deficiencies; and
(6) Whether petitioner Doris Cooperberg is relieved of liability for tax for the years in issue as an "innocent spouse" under section 6013(e).
Some of the facts have been stipulated and are found accordingly. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference.
Petitioners, Martin and Doris Cooperberg (hereinafter Martin and Doris), husband and wife, resided in Holliswood, New York, at the time of filing the petition herein.
They filed joint tax returns for the years at issue.
Martin and Doris were married in 1961. Periodically, in 1968 and early 1969, they were separated. They had two children, the second being born in 1969. In 1968, they purchased a house as joint tenants.
Martin had a "breakdown" and received psychiatric care from March to May or June, 1968, and from the latter part of 1968 to the middle of 1969.
Martin is a 1955 graduate of the Massachusetts Institute of Technology and a 1959 graduate of New York University Dental School, who has been licensed to practice dentistry in the State of New York since 1959. After service in the United States Army and a short period of employment by another dentist, Martin began a private dental practice in 1962, which practice he continued through the years at issue.
In 1968, Martin worked six days a week, ten hours a day, and took no vacation. In 1969, he worked five days a week from 9 a.m. to 5 p.m., and took no vacation. In both years, a large part of his professional income was paid by Medicaid.
Martin had a bank account for his dental practice at Manufacturers Hanover Trust Company (account no. 0-35289). He also deposited business receipts to thirteen other bank and brokerage accounts, including accounts in the name of Paul and Anna Cooperberg, his parents, and accounts in the name of Martin and Dorothea Cooperberg. The record does not reveal the identity of Dorothea Cooperberg.
Martin did not keep records from which his correct taxable income could be computed.
During the taxable years 1968 and 1969, Martin made deposits to bank and brokerage house accounts, as set forth below:
Total Deposits
Name on Account Account 1968 1969
Martin Cooperberg Manufacturers Hanover - #0-35289 $ 20,494.48 $ 29,877.58
Martin & Dorothea
Cooperberg Manufacturers Hanover - #1-46130 1,973.00 4,450.00
Paul & Anna Cooperberg
(Martin's parents) Manufacturers Hanover - CG11411 14,711.76 --
Martin Cooperberg East N.Y. Savings Bank - #A474126 32,972.00 9,130.00
Martin Cooperberg East N.Y. Savings Bank - #X-X-XXX-XXXX -- 55,502.88
Paul & Anna Cooperberg Seamen's Bank For
Savings - #1558725 14,433.00 --
Martin Cooperberg Jamaica Savings Bank - #81960 7,082.00 --
Martin Cooperberg Ridgewood Savings Bank - #23386 16,861.00 3,642.00
Martin & Doris
Cooperberg Chase Manhattan Bank - #XXX-X-XXXXXX 12,285.12 8,541.70
Doris Cooperberg in
Trust for Denise
Cooperberg Chase Manhattan Bank - #XXX-XXXXX 3,000.00 --
Martin Cooperberg Bache & Co. - #72-55365 15,021.00 --
Martin & Dorothea
Cooperberg Hirsch & Co. - #520689 9,626.00 28,080.77
Martin Cooperberg White, Weld & Co. #12-1564 30,000.00 --
Martin Cooperberg Scudder Funds - #XXXX-XXXX 1,509.00 1,500.00
___________ ___________
Totals $179,968.36 $140,724.93
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During the taxable years 1968 and 1969, Martin received checks from Medicaid for dental services rendered and deposited those checks as set forth below:
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