- 10 - Sales Tax Deficiencies Monterey was subject to an examination by the State of Florida Department of Revenue (the Department) for sales tax liabilities for 1987, 1988, and other years. The Department found that Monterey had collected more sales taxes than reported to the Department. For 1987 and 1988, Monterey reported to the Department gross receipts of $288,276 and $124,763, respectively. OPINION I. Deficiencies in Tax Respondent determined deficiencies in petitioners’ income taxes for 1987 and 1988 principally on account of respondent’s determination that petitioners underreported their Schedule C income from Monterey by $75,859 and $44,347, for 1987 and 1988, respectively.1 On the Forms 1040X, petitioners reported increased Schedule C net income for Monterey of $80,214 and $54,778, for 1987 and 1988, respectively, a capital gain of $27,944 for 1988, net operating loss deductions of $74,749 and $85,000 for 1987 and 1988, respectively, and decreases in interest income of $747 and $288, for 1987 and 1988, 1 Respondent also determined increased self-employment taxes under sec. 1401. Petitioners have not separately challenged those determinations, which, we assume, are derivative of respondent’s principal adjustments. We do not further discuss the self-employment tax adjustments.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