Stephen C. Smith - Page 8




                                        - 8 -                                         
          Commissioner, 85 T.C. 731, 742-743 (1985).  Thus, petitioner may            
          not deduct any amount for business expenses in the years in                 
          issue.                                                                      
          D.   Whether Petitioner Is Liable for Self-Employment Tax                   
               Petitioner does not deny that he is liable for self-                   
          employment tax.  However, he testified that King of Construction            
          paid wages to him.  If that were true, he would not be liable for           
          self-employment tax.                                                        
               Petitioner testified that money from Terminex went into an             
          account in the name of King of Construction.  He paid business              
          expenses from the account and kept what was left.  We conclude              
          that payments from Terminex are self-employment income to                   
          petitioner, and not wages.  We conclude that petitioner is liable           
          for self-employment tax in the years in issue.                              
          E.   Whether Petitioner Is Liable for the Additions to Tax for              
               Failure To File Returns for 1994, 1995, and 1996, for                  
               Failure To Pay Tax for 1996, and Failure To Pay Estimated              
               Tax for 1994, 1995, and 1996                                           
               Petitioner contends in his petition that he is not liable              
          for the additions to tax for failure to file timely returns and             
          pay tax under section 6651(a)(1) or (2), or for failure to pay              
          estimated tax under section 6654.  Petitioner concedes that he              
          did not file a tax return or pay any tax, including estimated               
          tax, for 1994, 1995, or 1996.  He offered no evidence as to why             
          he failed to do so.  We conclude that petitioner is liable for              







Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011