- 6 -
B. Legal Expenses
In or about 1988, petitioner obtained permission from the
IRS to engage in the limited practice of law. Petitioner’s law
practice was limited by standard employee rules of conduct
promulgated by the IRS.
Petitioner’s law practice generated receipts from real
estate closings and related activities. During 1993, petitioner
performed approximately four real estate closings and reported
gross receipts of $700. Petitioner conducted two real estate
closings in 1994 and reported gross receipts of $450.
Sometime in 1992, petitioner was “invited” to a meeting with
the Inspection Division of the IRS (Inspection). At the meeting,
Inspection told petitioner that he was under investigation for
practicing law during the official hours of his employment with
the IRS.
Finding himself under investigation by his employer,
petitioner obtained legal counsel. Legal counsel represented
petitioner throughout the investigation. The investigation did
not end until 1995. Petitioner claimed attorney’s fees on
Schedule C of his joint individual Federal income tax returns of
$2,380 in 1993 and $5,615 in 1994 in connection with the
investigation.
In 1994 petitioners were considering suing Mrs. Reynolds’
employer for sex discrimination. Lori D. Ecker of Chicago was
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