Gerald L. and Joy M. Zeidler - Page 24

                                       - 24 -                                         

          related to Mr. Zeidler's trade or business activity.  The Court             
          agrees with respondent.  Petitioners did not establish that Mrs.            
          Zeidler's accompaniment of her husband on these trips was in any            
          way related to or contributed to Mr. Zeidler's business.  The               
          trip to North Carolina was during the Christmas season and                  
          included a visit to Mrs. Zeidler's parents.  There was no showing           
          that Mrs. Zeidler participated in any activity related to Mr.               
          Zeidler's trade or business.  Petitioners failed to show any                
          business purpose for Mrs. Zeidler on the Birmingham, Alabama,               
          trip.  The $909 expense is considered a personal expense and is             
          not deductible under section 262.  Respondent, therefore, is                
          sustained on this issue.                                                    
               Petitioners' 1990 income tax return was signed on                      
          November 4, 1991, and was received by the IRS on November 8,                
          1991.  Petitioners had obtained an automatic extension that                 
          extended the filing period for their 1990 return to August 15,              
          1991.  Petitioners signed their 1992 return on August 12, 1993;             
          however, respondent alleged on brief that the envelope in which             
          petitioners mailed their return to the IRS bore a postmark date             
          of August 24, 1993, and was received by the IRS on August 28,               
          1993.  Petitioners also obtained an automatic extension to file             
          their 1992 return on or before August 15, 1993.  Respondent                 
          determined the addition to tax under section 6651(a)(1) for both            
          years.  At trial, petitioners presented no evidence on this issue           

Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011