Stephen F. Scofield and Nancy E. Scofield - Page 12

                                         12                                           
               Neither Northeast nor Sigma did business in 1988.                      
          Petitioner worked in the paper and printing business before and             
          after these cases were settled.                                             
               4.   Petitioners' Legal Fees and Federal Income Tax Returns            
                    a.   1986                                                         
               Petitioner paid legal fees of $10,243 relating to the                  
          Northeast litigation and the adversary proceeding.  Petitioners             
          deducted those fees on the Schedule C for petitioners' paper and            
          printing business filed with their 1986 Federal income tax                  
          return.  They reported no gross receipts and claimed a net loss             
          of $10,243 on Schedule C.                                                   
                    b.   1987                                                         
               Petitioner paid legal fees in 1987 of $34,083 for the                  
          Northeast litigation and $25,269 for the bankruptcy proceedings.            
          The bankruptcy legal fees included fees for:  A conference held             
          by the attorneys with Mrs. Scofield, the attendance by attorneys            
          at a deposition of Mrs. Scofield, compilation of bankruptcy                 
          pleadings and memos, research regarding discharge and pleadings             
          in bankruptcy, attorney-client privilege in bankruptcy, defenses            
          to objection to discharge, fraudulent conveyance/alter ego                  
          exposure, and reviewing Judge Lavien's ruling on alter ego and              
          concealment of assets.                                                      
               Petitioners deducted those fees ($59,352) on the Schedule C            
          for petitioner's paper and printing business filed with their               






Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011