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section 6654(a)1 in the amount of $1,719.60, and an accuracy-
related penalty under section 6662(a) in the amount of $6,342.80.
After concessions, the issues for decision are: (1) Whether
for 1995 petitioners are entitled to certain deductions related
to petitioner's home office. We hold they are not. (2) Whether
for 1995 petitioners are liable for the accuracy-related penalty
pursuant to section 6662(a). We hold they are.
Some of the facts have been stipulated and are so found.
The stipulated facts and the accompanying exhibits are
incorporated herein by this reference. At the time the petition
in this case was filed, petitioners resided in Edmonds,
Washington.
FINDINGS OF FACT
Petitioner has been in the floor covering business since
1962. Each morning petitioner spends approximately 1 hour in his
home office contacting customers, builders, and suppliers. When
petitioner returns home at night, he spends a few more hours in
his home office preparing various paperwork and returning calls
to people who left messages on his answering machine during the
day.
1All section references are to the Internal Revenue Code in
effect for the taxable year in issue, and all Rule references are
to the Tax Court Rules of Practice and Procedure, unless
otherwise indicated. References to petitioner are to Roy J.
Cole.
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