John Awadallah and Susan Malaty - Page 3




                                        - 2 -                                         
               Respondent determined a deficiency in petitioners’ 1996                
          Federal income tax in the amount of $7,566.  The issue for                  
          decision1 is whether John Awadallah (hereinafter petitioner) is             
          entitled to various Schedule C deductions in excess of the                  
          amounts allowed by respondent.                                              
               Some of the facts have been stipulated, and they are so                
          found.  The stipulation of facts and attached exhibits are                  
          incorporated herein by this reference.  At the time of filing the           
          petition, petitioners resided in Oldsmar, Florida.                          
          Background                                                                  
               Petitioner graduated in 1993 from pharmacy school.  Shortly            
          thereafter, petitioner passed the New York State licensing                  
          examination for pharmacists.  Petitioner worked full time as a              
          pharmacist for Walgreen’s in 1995 and 1996.                                 
               In 1995, petitioner consulted with his accountant, Nassaat             
          Antonious (Mr. Antonious), to create a side business.  Petitioner           
          established a tutoring activity in which he assisted students in            


               1    The notice of deficiency contains an adjustment to                
          petitioner’s employment tax.  This is a computational adjustment            
          which will be affected by the outcome of the other issues to be             
          decided, and we do not separately address it.                               

               Petitioner Susan Malaty (Ms. Malaty) did not appear at trial           
          and did not execute the stipulation of facts.  Accordingly, the             
          Court will dismiss this action as to her pursuant to respondent's           
          oral motion to dismiss for lack of prosecution.  See Rule 123(b),           
          Tax Court Rules of Practice and Procedure; Basic Bible Church v.            
          Commissioner, 86 T.C. 110, 114 (1986).  However, the decision               
          will be entered as to Ms. Malaty consistent with the decision               
          entered as to petitioner John Awadallah.                                    




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