11 $3,752 from her import sales business in 1990, as petitioners reported on their amended return for 1990. 3. International Petitioners reported that International had gross receipts of $23,574 in 1990 and $147,426 in 1991, cost of goods sold and expenses of $39,550 in 1990 and $162,917 in 1991, and losses of $15,976 in 1990 and $15,491 in 1991. Petitioner-husband deducted Schedule C expenses for International of $22,963 in 1990 and $30,234 in 1991. The parties agree that petitioners' taxable income should be decreased by $1,119 in 1990 and increased by $4,670 in 1991 because of changes to International's Schedule C expenses for those years. 4. Net Operating Loss Carrybacks Petitioners reported net operating losses of $15,976 on their original return ($14,448 on the amended return) for 1990 and $15,491 on their return for 1991. Petitioners elected to carry the net operating losses back to 1987 and 1988 by filing Forms 1045. Petitioners' net operating losses equaled the Schedule C losses from International in 1990 and 1991. H. Respondent's Examination Revenue Agent Margaret Davis (Davis) began to examine petitioners' returns for 1990 and 1991 late in 1992. Davis asked petitioners for the books and records of International, includingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011