- 7 -
Jennifer lived with petitioner in her rented apartment in West
New York, New Jersey, from January 1 through March 30, 1993;
Jennifer and petitioner then moved into the recently purchased
house in North Bergen, New Jersey. Emelina continued to live in
petitioner's apartment through the end of 1993. After petitioner
moved out of her apartment, she kept her lease on the apartment
and continued to make rental payments of $319 a month to the
landlord. While Emelina occupied the apartment through the end
of 1993, she reimbursed petitioner for the monthly rental
payments.
During 1993, Jennifer was a high school student and also
worked part time at the Drug Festival, Inc., in Union City,
New Jersey. Jennifer would cash her weekly paycheck, keep $5
for herself, and give the remainder to petitioner. Jennifer
earned $6,329 of gross wages for the 1993 calendar year. A total
of $1,252 was withheld from her wages for Federal, State, and
payroll taxes. Petitioner used Jennifer's wages to pay household
expenses and buy clothing for Jennifer.
D. Reconstruction of Income
In August 1995, Internal Revenue Service Tax Auditor Geneva
Dickerson (Ms. Dickerson) began an audit of petitioner's 1993
income tax return. After petitioner failed to provide adequate
books and records of her trucking business, Ms. Dickerson
reconstructed petitioner's income for the 1993 calendar year
using the bank deposit and cash expenditure method and determined
Page: 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