- 4 - hand-copied the information from the original cards onto blank cards that she subsequently presented to the Court as evidence that the children lived with her during 1993 and 1994. Petitioner reported her income for 1993 on a Form 1040. Respondent received that return on July 20, 1994, almost 3 months after it was due. On the Schedule C attached to her 1993 return, petitioner reported business income in the amount of $1,856.22 and claimed Schedule C deductions in the amount of $23,411.65. Petitioner reported her income for 1994 on a timely filed Form 1040. On the Schedule C attached to her 1994 return, petitioner reported business income in the amount of $4,509 and claimed Schedule C expenses in the amount of $22,518. Petitioner completed Form 4822, Statement of Annual Estimated Personal and Family Expenses (Form 4822), on which she listed total estimated personal and family expenses for 1993 in the amount of $43,729.56 and total estimated personal and family expenses for 1994 in the amount of $40,066.92. Pam Ranew, a tax auditor with the Albany office of the Internal Revenue Service, audited petitioner's 1993 and 1994 income tax returns. During the course of the audit, Ms. Ranew reconstructed petitioner's income and expenses for both 1993 and 1994 by adding (1) petitioner's salary from teaching, (2) her stated Schedule C income, and (3) her Federal and State tax refunds. To reconstruct petitioner's expenses, Ms. Ranew added (1) petitioner's Schedule C purchases and expenses, (2) expensesPage: 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