- 7 -
Development for the taxable years 1989 and 1990. The petition
therein was filed with the Court on September 11, 1992. The
Court in its opinion, filed August 8, 1994, agreed with
respondent that the disputed expenses were to be capitalized.
The Court of Appeals for the Third Circuit, without published
opinion, affirmed this Court's decision on June 28, 1995.
Hustead v. Commissioner, 61 F.3d 895 (3d Cir. 1995).
OPINION
The issue in this case is whether petitioners' 1991 and 1992
Schedule C expenses can be deducted as current business expenses
or whether they constitute capital expenditures. The amounts or
business purpose of the claimed expenses are not in dispute.
Although the parties have stipulated that the above is the
only issue for decision, petitioners on brief continue to assert
that "respondent's failure to cite any basis in law (reference to
an IRC section) acts to deprive taxpayers of a fair trial and due
process of law." Petitioners request that the burden of proof be
upon respondent as a sanction for such failure.
The notices of deficiency indicated that respondent had
disallowed all Schedule C expenses for both 1991 and 1992. This
clearly advised petitioners of the basis for the deficiencies.
The Court's opinion in the earlier case, which addressed the same
issue, was issued prior to the mailing of the notices involved
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011