Adnan Al Kaissy - Page 20

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            income under circumstances such as those here present.  Had the                            
            Forms 1099 reported the payments by the MBWC for airline tickets,                          
            a deduction for the amount of the cost of the tickets which were                           
            used for a business purpose of being transported to the shows                              
            might have been proper for each wrestler.  The record as a whole                           
            shows that many, if not most, of the wrestlers considered that                             
            they were paying for the airline tickets, since the cost of the                            
            tickets was deducted from the gross receipts from the show before                          
            the proration of their percentage of the gross receipts among the                          
            various wrestlers who performed at the show.  The record shows                             
            that from time to time this fact was discussed by the wrestlers                            
            in their locker rooms or during their trips.  Under these facts,                           
            it appears plausible that petitioner could have considered that                            
            he paid for the airline tickets that were furnished him by MBWC                            
            and was, therefore, entitled to deduct the cost of the tickets as                          
            an expense.  While persons accustomed to tax law understand the                            
            concept that an item paid for a person but not included in that                            
            person's income is not deductible, it is not uncommon for people                           
            not familiar with tax law to fail to understand this concept.                              
            This factor, combined with the confidence petitioner placed in                             
            his return preparer, and her certainty that wrestlers paid their                           
            own expenses, which must in some way have been intimated to                                
            petitioner during the preparation of his return, negates fraud by                          
            petitioner in claiming the deductions for air fares.                                       

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Last modified: May 25, 2011