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tax (tax), as follows:
Addition to Tax Accuracy-Related Penalty
Year Deficiency Under Sec. Under Sec. 6662(a)
6651(a)(1)
1992 $4,271 $417 $854
1993 7,848 1,240 1,570
The issues remaining for decision2 are:
(1) Are petitioners entitled for 1993 to Schedule C deduc-
tions in excess of those conceded by respondent? We hold that
they are not.
(2) Are petitioners liable for 1993 for the addition to tax
under section 6651(a)(1)? We hold that they are.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Petitioners resided in Alaska at the time the petition was
filed.
On April 5, 1997, petitioners signed Form 1040, U.S. Indi-
vidual Income Tax Return, for 1993 (petitioners’ joint return),
which respondent received on April 9, 1997. Attached to peti-
tioners’ joint return was Schedule C, Profit or Loss From Busi-
ness (Schedule C), in which petitioner Larry Petty (Mr. Petty)
reported his principal business or profession as “Truck Service”.
In Schedule C, petitioners reported gross income of $5,820 and
claimed expenses of $30,268 and a net loss of $24,448. Included
2Computational issues also remain, resolution of which flows
automatically from the concessions of the parties and our find-
ings with respect to petitioners’ claimed Schedule C deductions.
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