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self-employment tax of $1,835 and its corresponding $918
deduction. Respondent filed a Motion to Dismiss For Lack of
Prosecution With Respect To Petitioner Marilyn S. Cashman, which
was granted. Pursuant to this Court's Order, we held that
Marilyn S. Cashman is liable for a deficiency in Federal income
tax for 1995 in a reduced amount. After concessions, this Court
must decide whether James Cashman (petitioner) is entitled to
deduct $12,988 of claimed Schedule C, Profit or Loss From
Business, expenses in 1995. If petitioner is not entitled to
deduct this amount, both petitioners will be liable for a
deficiency in Federal income tax for 1995 in the reduced amount
of $1,950.
Some of the facts in this case have been stipulated and are
so found. Petitioners resided in Stillwater, Minnesota, at the
time they filed their petition.
In 1991, petitioner incorporated World Youth Foundation,
Inc., under the laws of Minnesota. The corporation's name was
changed to I.D. Solutions, Inc., in 1992. The corporation's name
was again changed in 1994 to I.D. Club, Inc. (I.D. Club). In
1997, I.D. Club was involuntary dissolved by the Minnesota
Secretary of State.
I.D. Club was a private, 24-hour emergency information relay
service where a family could register children or any other
individual. I.D. Club would maintain information on each
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