- 4 -
petitioner received $4,639 in 1995. These wages were reported by
the city on a Form W-2, Wage and Tax Statement.
Petitioner failed to file income tax returns for taxable
years 1990, 1992, 1993, 1994, and 1995. On July 15, 1999,
respondent mailed petitioner a notice of deficiency for those
years. The deficiency was based on income from the band for the
taxable years in question and the city of Madison for 1995.
On March 2, 2001, petitioner submitted to respondent’s
counsel a band engagement log, returns, and completed Forms 1040,
U.S. Individual Income Tax Return, reflecting income received
from the band and the city of Madison. The returns also
reflected business expenses on a Schedule C, Profit or Loss From
Business, of $123 per day for the following numbers of days in
Chicago: 102 days in 1990, 97 days in 1992, 98 days in 1993, 101
days in 1994, and 75 days in 1995. Petitioner did not claim
business expense deductions for his meals when the band played in
cities other than Chicago.
OPINION
Section 162 allows deductions for all ordinary and necessary
expenses incurred in carrying on a trade or business. Sec.
162(a). These expenses include traveling expenses (i.e., meals
and lodging) while away from home. Sec. 162(a)(2). However,
section 162 does not allow deductions for personal, living, or
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011