- 20 - 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.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011