Mario R. Sanhudo - Page 3

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          petitioner claimed employee business expenses (prior to the                        
          limitation provided by section 67(a)) as follows:                                  
                                Year             Amount                                      
                                1991             $9,023                                      
                                1992             8,491                                       
                                1993             9,530                                       
          The returns in issue were prepared by Space Coast Bookkeeping and                  
          Taxes, Inc. (Space Coast).                                                         
                In the notice of deficiency, respondent disallowed the                       
          claimed employee business expense deductions.  At trial                            
          respondent conceded that the itemized deductions claimed by                        
          petitioner were incurred and paid.  Respondent also conceded that                  
          petitioner is entitled to a portion of the claimed deductions.2                    
                                         OPINION                                            
                Respondent asserts that petitioner has failed to establish                   
          that the claimed expenses, over and above those allowed, are                       
          ordinary and necessary business expenses incurred while carrying                   
          on petitioner's trade or business as an employee.  Petitioner                      
          argues that the Internal Revenue Service (IRS) acted unfairly in                   
          examining his returns, and that the examination was the result of                  



          2  Respondent agreed that petitioner is entitled to deduct                         
          60 percent of the claimed automobile expenses for each of the                      
          years in issue.  Also respondent agreed that petitioner is                         
          entitled to deduct $510, $501, and $510 for the taxable years                      
          1991, 1992, and 1993 respectively, relating to claimed employee                    
          business expenses other than vehicle, parking fee, toll, and                       
          travel expenses.                                                                   




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