- 4 -
Expenses Claimed During Audit1 Allowed
Advertising $2,508 $2,324
Car & truck 12,425 9,822
Contract labor 893 - 0 -
Depreciation 1,088 - 0 -
Dues & publications 1,199 273
Interest--Home mortgage 580 - 0 -
Insurance 3,609 699
Laundry 765 - 0 -
Legal & professional 1,539 155
Meals & entertainment 780 - 0 -
Office expense 1,399 302
Repairs 4,207 38
Sales promotions 983 - 0 -
Security 754 - 0 -
Supplies 1,740 175
Taxes 1,451 15
Utilities 3,850 2,669
Travel 619 - 0 -
Wages, commissions & fees 2,813 1,257
Bad debt - 0 - 82
Freight - 0 - 150
1 These figures do not necessarily reflect the amounts shown on
the 1994 tax returns. They are taken from the stipulation of
facts submitted at the trial. It is unclear to the Court what
concessions, if any, have been made. Accordingly, the decision
will be entered under Rule 155 in order to reflect any
concessions that may have been made.
Of the $25,025 petitioners claimed during the audit for cost of
goods sold, the Montana Department of Revenue and respondent
allowed $24,238.
The auditing agent disallowed the expenses on the grounds
that (1) the expenses were not properly substantiated, (2) the
expenses were personal expenses, and (3) the expenses were not
business expenses. Petitioners appealed the Montana Department
of Revenues's determination to the State Tax Appeal Board of the
State of Montana. The Board sustained the Department.
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Last modified: May 25, 2011