- 11 -
In the notice of deficiency with respect to Simco,
respondent determined inter alia that Simco had unreported income
in the amounts of $8,521 for its taxable year ended June 30,
1990, and $860 for its taxable year ended June 30, 1991. The
amounts determined to be unreported income in these years
represent the difference between the proceeds from the scrap
metal sales to Dix Scrap and the amounts reported as additional
income on Simco’s amended returns, as follows:
Fiscal Scrap metal Amount reported Unreported
year proceeds on amended return income determined
6/30/90 $62,699 $54,178 $8,521
6/30/91 80,589 179,728 860
1Respondent treated the amount reported on the amended
return as being $79,729.
In addition, respondent determined that Simco is not entitled to
the claimed offsetting deductions for “increase in salaries” in
the amounts of $54,178 and $79,728 for its 1990 and 1991 taxable
years, respectively.
In the notice of deficiency with respect to John, respondent
determined inter alia that John had unreported income in the
amounts of $9,905 for tax year 1989 and $34,731 for tax year
1991. The amounts determined to be unreported income in these
years represent the difference between the scrap metal sales
proceeds retained by John and the amounts he reported as
additional income on his amended returns, as follows:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011