- 5 -
amended 1994 return which included a Schedule C for petitioner’s
truck driving. On the Schedule C, petitioners reported gross
income of $10,300; they arrived at this amount by adding $8,981,
the gross earnings to date listed on the April 30, 1994, computer
printout, to $1,319 which petitioner received from Ortega that
May. Petitioners claimed the following expenses:
Expense Amount
Taxes and licenses $650
Travel 350
Wages 1,190
Uniforms 27
Fuel 804
Beeper 72
Tools 150
Truck rent 1,878
Unpaid dispatch 1,690
Total 6,811
Petitioners reported a net profit of $3,489 and self-employment
tax of $493.4 Petitioners did not provide any additional
documentation to substantiate these expenses. Both the original
and amended 1994 returns were prepared by H & R Block.
In 1995, petitioners filed a claim against Mr. Ortega for
$5,000 in small claims court.5 Petitioners won their case, but
Mr. Ortega never paid. Respondent attempted to serve Mr. Ortega
4 Because of our holding in this case, respondent’s
determination of increased self-employment tax (and the
concomitant self-employment tax deduction) will be recomputed
under Rule 155.
5 Subsequent to trial, petitioners filed a motion to
supplement the record primarily to submit copies of documents
relating to this court action. Respondent filed an objection
thereto. Upon review, we shall grant petitioners’ motion and
receive the additional documents. They have only been relied
upon for our finding as to dates and the amount claimed by
petitioners.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011