- 3 - Petitioner owned a condominium located at 410 N. Market Street, Apt. 17, Inglewood, California 90302. She alleged she operated CWC from that condominium. During 1994, petitioner did not maintain a roster, syllabus, or any other documentation, to show who the students were who were purported clients of CWC. There was no documentation for the lessons that were allegedly taught to them. During 1994, petitioner did not maintain a log, or other documentation, of any hours she spent on CWC. Petitioner did not obtain a business license for CWC. She did not maintain any business books and records for CWC. Petitioner did not maintain a separate business checking account for CWC. She did not advertise the services available through CWC. Petitioner reported gross receipts and losses for CWC on her Federal individual income tax returns for the tax years 1993 through 1996 as follows: Gross Receipts Tax Year Reported Loss Claimed 1993 -0- $13,150 1994 -0- 30,684 1995 -0- 24,359 1996 -0- 16,291 Petitioner did not charge her alleged students because she said they could not afford to pay. When asked when she could make a profit, petitioner answered: “I expected to make a profitPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011