- 3 -
Petitioners filed a timely joint 1996 Federal income tax
return which was prepared by a professional income tax return
preparer. Petitioners elected to claim itemized deductions and
included a Schedule A with their return. Of relevance here, on
the Schedule A, they claimed an employee business expense
deduction of $5,174, related to Guido Lemos’ employment with
Cintas.
Petitioners’ 1996 return also includes a Schedule C on which
the following items attributable to petitioner’s employment as a
real estate agent are reported:
Amount
Income $2,550
Deductions:
Car and truck expenses 2,002
Insurance 1,400
Legal and professional 75
Office expenses 44
Rent or lease (vehicles,
machinery, & equip.) 1,021
Taxes and licenses 280
Meals and entertainment 310
Other expenses 3,765
Total expenses 8,897
Net loss 6,347
Taking into account the net loss reported on the Schedule C,
petitioners reported adjusted gross income of $21,345 on their
1996 return.
The examination of petitioners’ 1996 return began sometime
prior to June of 1998. On June 12, 1998, petitioners’ car was
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011