- 3 - Petitioners reported wages of $4,558 consisting of $950 paid to Mrs. Soledad Smith (Mrs. Smith) by Heritage Flamingo Apartments and $3,608.26 paid to Mr. Smith (petitioner) by Alameda Newspapers, Inc. On line 12 (business income) of Form 1040, petitioners reported $16,147. They did not attach a Schedule C as required, nor did they claim any deductions or cost of goods sold. Petitioner also received nonemployee compensation from the Alameda Newspaper Group in the amount of $183,585 during 1993, which petitioners failed to report. Neither did they deduct any expenses connected with this sum. A statutory notice of deficiency was sent to petitioners on October 1, 1996. On June 26, 1997, they attempted to file an amended income tax return, Form 1040X, on which they reported the $183,585 and claimed deductions totaling $178,636. Although requested to do so, petitioners did not meet with respondent or present any substantiation for the claimed deductions until January 26, 1998, 6 days before the beginning of the trial session on which this case was scheduled. The Court’s standing pre-trial order (which was served on petitioners by the Court on August 26, 1997, and a copy of which respondent had sent them when requesting an earlier meeting) stated: “Any documents or materials which a party expects to utilize in the event of trial * * *, but which are not stipulated, shall be identified inPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011