Frank Franklin - Page 7

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          entertainment expenses, as well as expenses relating to listed              
          properties, are subject to strict substantiation requirements               
          under section 274(d), and this Court is precluded from applying             
          the Cohan rule to such expenses.  Some of the expenses at issue             
          in this case are subject to the section 274(d) restriction.  On             
          this record, the Court holds that petitioner is not entitled to             
          deductions for his Schedule C expenses in amounts exceeding those           
          allowed by respondent.  Respondent, therefore, is sustained on              
          this issue.                                                                 
               The second issue relates to respondent's determination that            
          petitioner failed to include in gross income on his 1996 return             
          $1,193 in payments or distributions petitioner received from                
          Metropolitan Life Insurance Co.                                             
               Respondent offered into evidence an Information Returns                
          Master File Transcript with respect to petitioner for 1996.  That           
          transcript identifies information returns filed by payors of                
          payments or distributions to taxpayers during a taxable year.               
          Respondent's transcript lists an information return by                      
          Metropolitan Life Insurance Co. of New York, NY, and the issuance           
          to petitioner of an IRS Form 1099-R, Distributions From Pensions,           
          Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance              
          Contracts, etc., reflecting a gross distribution to petitioner              
          during 1996 of $5,348, of which $1,193 was a taxable amount and             
          from which $119 was withheld in taxes.  The transcript does not             

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