- 3 - Mr. Vega routinely asked Mrs. Vega to sign documents without explaining their content or legal effect. He assured her that signing the documents was in the family's best interest. He frequently told her that her role was to take care of the house and children and that she could leave if she did not like this arrangement. Invariably, she would sign the documents. The Vegas' 1988 individual income tax return reported total Schedule C (Profit or Loss From Business or Profession) income of $2,000, total Schedule C deductions of $64,725, and total Schedule E (Supplemental Income Schedule) income of $84,993. The Vegas' 1989 individual income tax return reported total Schedule C income of $5,000, total Schedule C deductions of $26,421, and no self-employment tax. On May 24, 1994, respondent issued a notice of deficiency to Mrs. Vega and Mr. Vega's estate for the 1988 and 1989 tax years. With respect to the 1988 tax return, respondent disallowed the deductions totaling $64,725 due to lack of substantiation and increased total Schedule E income by $1,952. These adjustments resulted in a deficiency in the amount of $16,550 for 1988. With respect to the 1989 tax return, respondent disallowed the deductions totaling $26,421 due to lack of substantiation. This adjustment resulted in a deficiency of $6,701. On June 21, 1994, Mrs. Vega filed her petition with this Court requesting relief under section 6013(e).Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011