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provided to respondent’s Appeals officer a canceled check as
evidence of an additional $4,000 interbank transfer, and
respondent credited DUI for the additional $4,000 interbank
transfer when determining DUI’s unreported income for 1993.
Set forth below is a summary schedule that reflects
respondent’s calculation of DUI’s unreported gross income for
1992 and 1993:
1992 1993
Bank Deposits $ 548,309 $ 488,841
Less Reductions
Returned Checks (18,812) (17,179)
Refunds to Clients (7,148) (7,888)
Interbank Transfers (40,850) (16,356)
Gross Receipts $ 481,499 $ 447,418
Gross Receipts as Reported (473,156) (429,186)
Unreported Gross Income $ 8,343 $ 18,232
On its S corporation tax returns for 1992 and 1993, DUI
claimed as “other deductions” business expenses of $27,020 and
$65,336, respectively.
On audit, respondent determined that a portion of DUI’s
claimed business deductions for the years in issue was not
allowable. The deductions claimed by DUI and the amounts
disallowed and allowed by respondent are reflected in the
schedule below:
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Last modified: May 25, 2011