John Shackelford Fairbanks - Page 5

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          administrative appeal.  As we understand it, petitioner contends            
          that respondent acted in an unreasonable manner by failing to               
          meet with him in a timely manner during the audit and                       
          administrative appeal process.  Petitioner cites Don Casey, Co.             
          v. Commissioner, 87 T.C. 847 (1986), and asks this Court for                
          relief.  The Don Casey, Co. case involved the award of costs and            
          certain fees pursuant to section 7430, and it is apparently under           
          this section that petitioner seeks relief.                                  
               A motion for litigation and administrative costs under                 
          section 7430 must be made pursuant to Rule 231.  Since the                  
          request for relief is premature and there is no motion pending at           
          this time, we need not address this matter.                                 
          Section 183                                                                 
               Section 162 allows deductions for ordinary and necessary               
          expenses paid or incurred in carrying on a trade or business.               
          For a taxpayer to be engaged in a trade or business, the                    
          taxpayer's primary purpose for engaging in the activity must be             
          for income or profit, and he must be involved in the activity               
          with continuity and regularity.  See Commissioner v. Groetzinger,           
          480 U.S. 23, 35 (1987).  If an individual engages in an activity            
          without the objective of profit, section 183 generally limits               
          allowable deductions attributable to the activity to the extent             
          of gross income generated by such activity.  See sec. 183(b).               

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