- 2 - After concessions by respondent,2 the issues for decision are: (1) Whether petitioners are entitled to the claimed employee expenses on Schedule A for: Home office $3,600, electricity $109, telephone $505, car and truck $3,346, meals and entertainment $1,479, and clothing $1,296; (2) whether petitioners are entitled to a claimed Schedule C deduction of $1,180 for travel; and (3) whether petitioners are liable for the accuracy-related penalty under section 6662(a) for negligence or disregard of rules or regulations. Some of the facts have been stipulated, and they are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time they filed their petition, petitioners resided in Beverly Hills, California. Schedule A Katia Popov (Mrs. Popov) is a professional violinist. During 1993, Mrs. Popov played with the Los Angeles Chamber Orchestra and the Long Beach Symphony. Additionally, Mrs. Popov played in orchestras which recorded music for the motion picture industry. For example, a contractor (from MGM, Paramount, Universal, etc.) would call Mrs. Popov to tell her that he was putting together an orchestra to record music for a motion picture. When the contractor called, either Mrs. or Mr. Popov 2 In the notice of deficiency, respondent disallowed certain expenses which were claimed on Schedule C-1 pertaining to Mrs. Popov’s business. Respondent now concedes these items.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011