- 16 - total income for 1987 was $410,000, and this was the income reported to the city of New Orleans for occupational license purposes. On the sheet marked by petitioner as the Income Statement, Mr. Bruno wrote: "$410,000 (includes 1099s) to City of NO (for the payment of license)." On the 1987 income tax return, line 1a of the Schedule C for the medical practice reflected gross receipts or sales of $376,206. Since petitioner told Mr. Bruno that the total income figure of $410,000 included his Form 1099, the total amount of the Forms 1099 in the amount of $25,794 was reported on line 4 of the Schedule C. The gross income for the Schedule C reflected on line 5 was $402,000. Petitioner told Mr. Bruno that the amount of $410,000 included $8,000 shown on a Form W-2. Thus, the remaining $8,000 of the $410,000 was shown on line 7 of the first page of petitioners' return. Since the actual amount of income shown on that Form W-2 was $8,972.53, this was rounded to $8,973 and listed on line 7. For the taxable year 1988 petitioner gave Mr. Bruno a single sheet of paper on which he wrote "Income, 250,000 office income." Since petitioner gave Mr. Bruno certain Forms 1099 reflecting income from his medical practice, the Form 1099 income was again segregated from the other medical practice income. Mr. Bruno's firm added the Forms 1099 and attached the adding machinePage: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011