- 2 -
Respondent determined deficiencies in petitioner's Federal
income taxes, an addition to tax, and accuracy-related penalties
for the years indicated:
Addition to Tax Penalties
Year Deficiency Sec. 6651(a)(1) Sec. 6662(a)
1992 $4,438 $221.90 $638.40
1993 $2,730 - $546.00
After a concession by petitioner,2 the issues remaining for
decision are: (1) Whether petitioner is entitled to Schedule C
business expense deductions in excess of the amounts allowed by
respondent; (2) whether petitioner is liable for the section
6651(a)(1) addition to tax for 1992; and (3) whether petitioner
is liable for the section 6662(a) accuracy-related penalties for
1992 and 1993.
Some of the facts have been stipulated and are so found.
The stipulations of fact and the attached exhibits are
incorporated herein by this reference. Petitioner resided in
Royal Palm Beach, Florida, on the date the petition was filed in
this case.
2 Petitioner concedes that respondent properly determined
that one-half of the Social Security benefits she received during
1992 must be included in her gross income for her 1992 taxable
year. On her 1992 return, petitioner correctly reported her
Social Security benefits received in the amount of $8,885 but
mistakenly entered the taxable amount of such benefits on the
line labeled "other income". The proper adjustment to
petitioner's taxable Social Security benefits for 1992 is only
$2,247.50, which represents the difference between the taxable
amount reported on the wrong line ($2,195) and the correct
taxable amount ($4,442.50).
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