Estate of Carlos A. Vega, Deceased, Trinidad O. Vega, Administratrix, and Trinidad O. Vega - Page 3

                                        - 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