- 5 - claimed a Schedule C deduction of $157.50 for 2 months of these maintenance fees but alleged that he paid this fee every month in 1996. We held the record open for 45 days to allow petitioner to provide documentation to substantiate any additional expense. Petitioner provided two credit card statements that show he paid a total of $157.50 to Strategic. Petitioner also provided a packing list which shows that Strategic sent a product to petitioner in November 1996 in connection with the “Automatic Monthly Reorder” petitioner authorized. Petitioner did not provide any further documentation. Section 1401 imposes a tax on a taxpayer’s self-employment income. Self-employment income includes the net earnings from self-employment derived by an individual during the taxable year. See sec. 1402(b). Net earnings from self-employment income means gross income derived by an individual from any trade or business carried on by the individual, less any attributable deductions. See sec. 1402(a). An individual is engaged in a trade or business if the individual’s activities are conducted with continuity and regularity and primarily for income or profit. See sec. 1402(c); Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987). The trade or business may be carried on by an individual “either personally or through agents or employees.” Sec. 1.1402(a)-2(b), Income Tax Regs.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011