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Respondent also determined in the notice of deficiency
that petitioners had failed to report interest income in
the aggregate amount of $489 that they had received during
1993 from accounts at three banks. Finally, respondent
determined that petitioners had failed to report “rental
income” in the amount of $14,067.
At trial, petitioners introduced into evidence an
amended return on Form 1040X. Petitioners had submitted
the amended return to the Internal Revenue Service prior
to trial, but it was never processed and the notice of
deficiency is based upon petitioners’ original return. The
amended return claims cost of goods sold with respect to
petitioner’s newsstand business in the amount of $11,809,
the amount determined in the notice. The amended return
also reports rental income from “News Stand Rental” in the
amount of $14,067, the amount determined in the notice.
The Schedule C attached to the amended return reports the
following income and expenses:
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Last modified: May 25, 2011