Fatai O. and Mary King - Page 2




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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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