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deficiency was based on petitioners' joint amended 1994 income
tax return filed on December 6, 1996.
The issues for decision are: (1) Whether petitioners are
entitled to the following deductions claimed on Schedule C:
Robbery from PNC Bank, $9,540; lottery shortage, $11,744; car and
truck, $3,120; repairs and maintenance, $4,944; (2) whether
petitioners had unreported gross income of $11,667 from the sale
of a newsstand and unreported interest income of $227; and (3)
whether petitioners are liable for the accuracy-related penalty
under section 6662(a).2
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. Petitioners resided in
Wyndmoor, Pennsylvania, at the time they filed their petition.
During 1994, Mr. King owned King's Newsstand. Pennsylvania
State lottery tickets were sold at King's Newsstand. As a retail
distributor of Pennsylvania State lottery tickets, Mr. King was
required to set up a lottery bank account and to submit winning
1(...continued)
all Rule references are to the Tax Court Rules of Practice and
Procedure.
2Petitioners have not objected to respondent's
determinations regarding self-employment tax and a deduction
resulting from that tax.
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