Royal and Shelly Spence Wiley - Page 5




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          this service because of what they perceived to be complications             
          in the reporting of transactions involving stock options                    
          petitioner received as an employee of Intel Corp.  On the                   
          recommendation of several of his coworkers at Intel Corp.,                  
          petitioners engaged a tax return preparer, Robin Beltran, for               
          their 1998 and 1999 returns.2                                               
               With respect to the contested issues, petitioners claimed              
          the following charitable contributions as itemized deductions on            
          their income tax returns:                                                   

          1998       1999                                                             
               Cash contributions                 $7,270     $7,446                   
          Noncash contributions                 413        413                        
          Totals                           $7,683     $7,859                          

          In the notice of deficiency, respondent disallowed the amounts              
          claimed for each year for lack of substantiation.                           
               At trial, petitioners produced documentation that would                
          establish payment of some charitable contributions for the years            
          at issue but nowhere near the amounts claimed on their returns.             
          They agreed that their noncash contributions were considerably in           
          excess of the $413 claimed each year but produced no                        
          documentation as to their noncash contributions.  Their return              


               2    The Court notes that this case is one of numerous cases           
          heard by the Court involving tax returns prepared by Mr. Beltran,           
          which essentially involve the same deductions at issue here.                





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