-14- the audit and in the proceeding herein, petitioner did not dispute respondent’s determination that Ms. Odell was petitioner’s employee in any of the taxable quarters after 1995. Petitioner did dispute respondent’s determination that Ms. Odell was petitioner’s employee in 1995 and that petitioner employed “Other Workers” in 1995 and 1996. Respondent conceded in this proceeding his determination as to the “Other Workers”. The Odells reported on their joint 1995 through 1998 Federal individual income tax returns the following amounts of total income, rent income, and royalties: Total income Rent income Royalties 1995 $107,804 $7,200 $42,048 1996 91,912 2,500 34,200 1997 109,920 7,200 150,784 1998 98,329 7,200 46,690 1 Whereas the 1997 Form 1099-MISC, Miscellaneous Income, that petitioner issued to Ms. Odell reported that it had paid to her royalties of $51,611, the record does not explain why the Odells reported this lower amount. They recognized (1) the royalties in full and (2) the full amount of rent less $1,018 of depreciation in 1995, $860 of mortgage interest in 1996, $794 of depreciation in 1997, and $1,086 of depreciation in 1998. For 1995 through 1997, petitioner deducted 5(...continued) income tax returns in October 1997 and began auditing petitioner’s corporate income tax returns in December 1997.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011