- 5 - The joint return for 1995 was signed by both petitioners and a representative of J.E. & Associates (J.E. & Assoc.), of Las Vegas, Nevada, as tax preparer, on November 18, 1996. The 1995 return was received by respondent’s Ogden/Las Vegas Service Center on July 30, 1997. On the Schedule C attached to their 1993 Federal income tax return, petitioners reported Dormer & Louver’s gross receipts to be $244,710, cost of goods sold to be zero, total business expenses to be $237,571, and net profit to be $7,139. On the Schedule C attached to their 1994 Federal income tax return, petitioners reported Dormer & Louver’s gross receipts to be $442,012, cost of goods sold to be zero, total business expenses to be $435,262, and net profit to be $6,750. On the Schedule C attached to their 1995 tax return, petitioners reported Dormer & Louver’s gross receipts to be $1,095,339, returns and allowances to be $454,387, cost of goods sold to be $311,578, total business expenses to be $404,606, and net loss to be $75,232. Dormer & Louver’s gross receipts and business expenses for 1993, 1994, and 1995 were computed using the cash method of accounting. For tax years 1993-95, respondent determined Dormer & Louver’s cost of goods sold and business expenses to be as follows:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011