John Jackson, Yvonne Jackson, Gregory M. Barrow and Timsey Barrow, Cross-Appellees v. Commissioner of Internal Revenue, Cross-Appellant

TACHA, Circuit Judge.

This is an appeal from a United States Tax Court decision upholding the disallowance of the taxpayers’ deductions in 1978 for lease amortization and advertising expenses under I.R.C. § 162 and the imposition of penalties under I.R.C. § 6651 for one of the taxpayer’s failure to file timely returns in the 1978, 1979, and 1980 tax years. We affirm.

Taxpayers Barrow and Jackson (hereinafter referred to jointly as “taxpayers”) 1 were involved in a business venture to manufacture, distribute, and sell a device known as the “Norris XLP,” capable of playing and recording…