- 2 - 6651(a)(1)1 addition to tax of $2,989, and a section 6662(a) accuracy-related penalty of $12,190. Prior to or at trial, respondent made several concessions resulting in a substantial reduction of the determined deficiency and the elimination of the section 6651(a)(1) addition to tax. Because of petitioner2 William Halle's contention that the notice of deficiency was arbitrary and that the burden of proof shifted to respondent, the concessions made by respondent are fully set forth below. On petitioners' Schedule C attached to their 1990 Federal income tax return, they claimed Schedule C business expenses in the total amount of $117,871. During the examination of their return, respondent allowed in full the amounts claimed for repairs, travel, meals and entertainment, which totaled $4,026. For all the remaining categories of expenses claimed on the return, respondent determined in the notice of deficiency that petitioners were entitled to Schedule C expenses in the amount of $63,013 and disallowed $50,832. During the preparation of this case for trial, respondent increased the amount of Schedule C expenses to which petitioners were entitled by $6,072.91 and 1 Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable year 1990, and all Rule references are to the Tax Court Rules of Practice and Procedure. 2 Subsequent references herein to petitioner individually are to William W. Halle IV.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011