- 10 -
1997. Respondent disallowed deductions of $15,302 for 1996 and
$25,746 for 1997 because petitioner did not substantiate them.
Petitioner contends that he paid $15,302 in 1996 and $25,746
in 1997 to hire a receptionist and a repair technician to fix
copy machines for him. However, petitioner offered no evidence
other than his testimony, which was vague and uncorroborated.
Petitioner did not identify the receptionist or the repair
technician or indicate when they worked for him or when he made
the payments.
We conclude that petitioner may not deduct more
miscellaneous expenses related to his Schedule C business than
respondent allowed for 1996 and 1997.
D. Whether Petitioner Is Liable for the Addition to Tax for
Failure To Timely File His 1997 Income Tax Return
Respondent contends that petitioner is liable for the
addition to tax under section 6651(a) for failure to timely file
his income tax return for 1997. Petitioner received an automatic
4-month extension to file his 1997 income tax return until
August 17, 1998. Petitioner filed his 1997 return on August 17,
1998. Thus, petitioner timely filed his 1997 return. Sec.
6651(a)(1).
Respondent alleges that petitioner’s extension to file is
invalid because petitioner did not properly estimate his tax
liability for 1997 or remit the estimated tax when he applied for
the extension. The Commissioner bears the burden of production
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011