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capacity as an attorney.” At trial, petitioner claimed $2,294 in
such contributions but provided no documentation to support
payment of such amount.
Petitioner filed his 1995 Federal income tax return
(original return) with the Internal Revenue Service on January
21, 1997. As further explained below, he later filed an amended
return. Petitioner claimed a filing status of married filing
separately to avoid collection activities against his wife.
Petitioner’s wife filed separately for 1995 and claimed the
standard deduction. Nothing in the record indicates that
petitioner was separated or living apart from his wife.
On his original return, petitioner reported no wage income
on line 7 of Form 1040. He reported trade or business income on
line 12 in the amount of $24,392.92. He claimed the standard
deduction, reported $3,446.61 in self-employment tax, and claimed
one-half of the self-employment tax, or $1,723.51, as a
deduction. On the attached Schedule C, petitioner reported
$72,520.03 in gross receipts and claimed $48,127.11 in expenses
from his law practice. These Schedule C expenses included $5,873
in car and truck expenses, $1,892.52 in travel expenses,
$2,694.76 as the deductible portion of meals and entertainment
expenses, and $8,215.61 in other expenses. The “other expenses”
included $1,298.83 for memberships, $975 for parking, and $2,294
for charitable contributions.
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