Lota Womack - Page 13

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          utilities that had been included among the business expenses                
          claimed for 1990 and disallowed by respondent.  Respondent                  
          increased the depreciation deduction for both years and allowed a           
          deduction for an early withdrawal penalty that the Womacks had              
          not taken in 1989.  In calculating the Womacks' tax liability,              
          respondent allowed a child care credit of $133 and $378, for 1989           
          and 1990, respectively, credits that the Womacks had failed to              
          take.  Respondent computed self-employment tax of $1,090 and                
          $3,903 for 1989 and 1990, respectively, and disallowed                      
          (recaptured) the earned income credit of $796 claimed for 1989.             
               Petitioner's adjusted gross income for 1992, according to              
          the return she filed for that year, was $6,183.  Her 1992 filing            
          status was married, filing separately.  Petitioner also filed a             
          return for 1993.                                                            
               Mr. Womack has not petitioned this Court or otherwise                  
          contested respondent's determinations as set forth in the notice            
          of deficiency.  Mr. Womack apparently has paid some $1,900 to               
          $2,800 of the tax deficiency.  He does not understand how the               
          returns were prepared or respondent's determinations.  The                  
          records that Mr. Womack gave to Ms. Stroup for the accountant to            
          use in preparing the returns at issue were placed in storage in             
          July of 1993, along with furniture, office equipment, and other             
          of Mr. Womack's belongings.  That occurred at the time the family           
          residence was foreclosed on, when Mr. Womack and the three                  
          children had to move out of that house.  In July of 1994, the               




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