- 2 -
Respondent determined a deficiency in petitioner's Federal
income tax for 1994 in the amount of $744.2
The issue for decision is whether petitioner's earnings from
his Schedule C business activity are subject to self-employment
tax under section 1401.
Some of the facts have been stipulated and are so found.
The stipulations of fact and attached exhibits are incorporated
herein by this reference. Petitioner resided in Ragley,
Louisiana, on the date the petition was filed in this case.
Petitioner was a minister during 1994. He also operated a
business which he referred to as Neighborhood Handyman (the
handyman business). On a Schedule C attached to his 1994
return,3 petitioner reported a net profit from his handyman
business in the amount of $5,263.85. He did not report any
liability for self-employment taxes with respect to this net
profit. In the statutory notice of deficiency, respondent
determined that petitioner's earnings from his handyman business
are subject to self-employment tax.
2 In paragraph 3 of his Answer, respondent alleges that
while the cover page of the notice of deficiency states a
deficiency in the amount of $2,113, the correct deficiency
determined in the notice is $744.
3 Petitioner and his wife, Wendy A. Williams, filed a
joint 1994 Federal income tax return. The notice of deficiency
in this case was issued jointly to petitioner and Mrs. Williams,
but Mrs. Williams has not filed a petition in this matter and is
not a party to this proceeding.
Page: Previous 1 2 3 4 Next
Last modified: May 25, 2011