Joseph W. Evans, Jr. and Mildred S. Evans - Page 7




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               the taxation of individual retirement account                          
               distributions.  Question 12 may be applicable.                         
                    We suggest that the parties meet during the week                  
               of March 4, 1994 after you have had time to review                     
               these materials.  The Court requires the parties to be                 
               prepared for trial as of 10:00 a.m. on March 11.  Mr.                  
               Levine is available to meet with you between Monday and                
               Thursday, March 4 through 7.  Unfortunately, he will be                
               out of town on Friday, March 8, and will not be                        
               available to meet with you on that date.                               
               In paragraphs 5 and 6 of the proposed stipulations,                    
          respondent wrote:                                                           
                    5.  The petitioners did not appear to an                          
               examination by the Internal Revenue Service.  During                   
               appellate consideration after this case was docketed,                  
               the petitioners presented documentation to the Internal                
               Revenue Service.  Based on this documentation, the                     
               Internal Revenue Service allowed the following amounts                 
               which are conceded for purposes of this case:                          
               Schedule C - Primerica:                                                
                    Automobile expense - $1,872.00 allowed as one-half                
               of the expense claimed on the Primerica Schedule C as                  
               what the Internal Revenue Service considered to be a                   
               reasonable approximation.                                              
                    Supplies - $591.00 allowed of the $2,886.00                       
               claimed on the Primerica Schedule C.                                   
               Schedule E:                                                            
                    Expense - $9,250.00 allowed of the $10,908.00                     
               claimed.  The petitioners concede the balance of                       
               $1,658.00.                                                             
                    Depreciation - $4,505.00 allowed.  The respondent                 
               concedes this adjustment in full.                                      
                    6.  The amounts and adjustments that remain in                    
               issue are as follows:                                                  
               Schedule C:                                                            
                    Automobile Expense - $1,871.00 for the Primerica                  
               Schedule C.                                                            



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