Richard T. Wallace - Page 3

                                        - 3 -                                         
          returns and paid no Federal income taxes for 1990, 1991, 1992,              
          and 1993.                                                                   
               1.  Determination of Taxable Income                                    
               Petitioner failed to provide any information as to the                 
          amount or source of his income for the years 1990 through 1993.             
          During those years he was self-employed in the business of                  
          selling hearing aids and giving hearing tests.  He had been in              
          such business for about 20 years.  Petitioner admitted during an            
          investigation by the Colorado Consumer Protection Office that               
          between July 1992 and January 1994, he had at least six business            
          transactions in Colorado.  He also admitted that he transacted              
          most of his business in States other than Colorado and in six               
          foreign countries, but he refused to disclose any information               
          relating to such business.                                                  
               Petitioner provided some support for his wife, Martha                  
          Wallace, during the years 1992 and 1993.                                    
               In determining the amounts of petitioner's income for the              
          years 1990 through 1993, respondent used data obtained from the             
          U.S. Department of Labor, Bureau of Labor Statistics, which                 
          detailed what it would cost a family of four to live, taking into           
          account food, housing, transportation, medical care, personal               
          care, and taxes.  These figures were adjusted to one person,                
          based on the Bureau of Labor Statistics Survey of Consumer                  
          Expenditures.  Respondent subtracted all taxes contained in the             
          Bureau of Labor Statistics determination of necessary expenses.             




Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011