- 10 -
Petitioners also claimed work/tool expenses of $216.41,
$319.82, and $270.16 for 1997, 1998, and 1999, respectively.
Although petitioners presented a list of the various retail
places where the expenses were incurred, at places such as Home
Depot, Pep Boys, Harbor Freight, and others, no documentation was
presented describing the tools or other merchandise that was
purchased and the need for or the use of such merchandise in
connection with their employment. The Court, therefore, rejects
petitioners' claim to an allowance of work/tool expenses for the
years in question.
As noted above, petitioners claimed deductions for tax
preparation fees for each of the years in question. The Court
need not pass upon the substantiation of these expenses because
these expenses, even if allowable, would not exceed 2 percent of
petitioners' adjusted gross income under section 67(a).
Petitioners contend they should be absolved of liability for
the section 6662(a) penalties because they relied on the
representations of their return preparer.
The Court is satisfied that petitioners knew that the
amounts deducted on their tax returns for charitable
contributions and employee business expenses were false. They
even submitted records to their return preparer that purportedly
would have substantiated their deductions, which their preparer
declined to use. Petitioners knew they could only deduct
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011