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Respondent determined a deficiency in petitioners' Federal
income tax for 1995 in the amount of $2,688. The issue for
decision is whether petitioners are subject to the alternative
minimum tax (AMT) under section 55.
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
Webster, New York, at the time their petition was filed.
References to petitioner are to George Prosman.
FINDINGS OF FACT
During the year in issue, petitioner was employed as a
computer consultant by Command Systems, Inc. (Command Systems).
As a consultant, petitioner bid on different projects using a
formula which included both a standard hourly base rate and a
"per diem allowance" amount. Petitioner included a "per diem
allowance" amount in his bid formula because most of his projects
were out of town and petitioner incurred substantial meal and
lodging expenses while away from home.
Accordingly, petitioner requested that Command Systems
separate petitioner's "per diem allowance" amount, which
petitioner used to pay for employee business expenses, from his
base rate. Command Systems refused and included both amounts as
wages on petitioner's 1995 Form W-2.
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