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Water none none
Page phone none none
Alarm none none
In the notice of deficiency, respondent disallowed all expenses
claimed on the Schedule C for the taxable year 1993.
Petitioners' 1992 and 1993 Federal income tax returns were
prepared by Bernadette Henderson of Green's Tax Service, and
their amended 1993 return was prepared by Lee Green of Green's
Tax Service.
At the end of the trial, respondent orally moved for leave
to conform the pleadings to the evidence under Rule 41(b).
Petitioners did not object. We took the motion under advisement.
OPINION
As a preliminary matter, we consider whether respondent's
motion to conform the pleadings to the evidence should be
granted.
Respondent's motion is for leave to file an amended answer
for an increased deficiency and penalty. The deficiency for 1992
would be increased from $4,976 to $5,846 resulting from the
correction of the gross receipts to $48,677 and the cost of goods
sold to $29,236.2 The penalty for 1992 would be increased from
$995 to $1,169.
2 On their 1992 Schedule C, petitioners claimed $1,200 as
the amount of supplies. The parties agreed that the goods
purchased (cost of goods sold) for 1992 was $29,236. This was
based on the total purchases from Abbey Road.
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