- 4 - Mrs. Bot would have continued to do the same farming jobs even if there were no Agreement. For all 3 years in issue, petitioners filed their Forms 1040 income tax returns on a married, filing jointly basis. On their Schedules E, Supplemental Income and Loss, petitioners reported that Mrs. Bot received net rental income in the amounts of $17,825, $18,079 and $18,211 in 1993, 1994, and 1995, respectively. On line 7, Wages, salaries, tips, etc., of their Forms 1040, petitioners reported that Mrs. Bot received wages in the amounts of $15,074, $15,165, and $15,296 for 1993, 1994, and 1995, respectively. The identical amounts reported as wages were deducted as labor hired on the respective Schedules F, Profit or Loss From Farming, for the years in issue. Mr. Bot failed to withhold Federal income taxes, State income taxes, Federal Insurance Contribution Act taxes, and Medicare tax for all 3 years. In the notice, respondent, inter alia, determined that the real estate rental payments Mrs. Bot received from Mr. Bot during the taxable years at issue are includable in Mrs. Bot's net earnings from self-employment under section 1402(a)(1), and thus subject to self-employment tax. Respondent also allowed petitioners a deduction for one-half of the self-employment taxes imposed for the taxable years at issue.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011