- 3 - Taxable Income Tax Additions to Tax Year Deficiency Sec. 6651(a)(1) Sec. 6654 1989 $8,964.00 $2,241.00 $604.00 1990 7,867.00 1,966.75 516.00 1991 8,190.00 2,047.50 470.00 Respondent’s determinations were based in large part upon Forms 1099 filed by various third-party payors, which forms respondent alleges indicated that petitioner operated a drywall installation business. Respondent also determined that petitioner received additional income for each year not reported on Forms 1099 through application of tables produced by the U.S. Department of Labor, Bureau of Labor Statistics. These adjustments were explained in the notice as follows: Based on statistical information from the U.S. Department of Labor, we have established amounts of personal living expenses and amounts of income needed to pay for those expenses. Since your income was not sufficient to pay for all of your personal living expenses, we have adjusted your income accordingly. Petitioner thereafter on July 29, 1994, filed delinquent Forms 1040 for 1989 through 1991. These returns each reflected the same Newport Beach address to which the notice of deficiency had been sent and included a Schedule C, Profit or Loss From Business, for “Drywall Installation”, “DRYWALL INSTALLER”, or “DRYWALL CONTRACTOR”. The Forms 1040 and Schedules C showed gross receipts, interest, and a State income tax refund in amounts identical to those shown in the Forms 1099 received byPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011