Bradley M. Cohen and Kathy A. Cohen - Page 15




                                       - 15 -                                         
          They argue that “an employer cannot be his own employee” and that           
          no other person controlled petitioner in his work for NHIL.  To             
          accept petitioners’ contentions that there was a lack of control            
          over petitioner would be the equivalent of disregarding the                 
          corporate form in which petitioner chose to conduct his business.           
          Caselaw does not permit a taxpayer to use his or her dual role as           
          a shareholder of and service provider to a corporation as grounds           
          for ignoring the legal ramifications of the business form he                
          selected.  See Moline Props., Inc. v. Commissioner, 319 U.S. 436,           
          438-439 (1943); Joseph M. Grey Pub. Accountant, P.C. v.                     
          Commissioner, supra at 129.                                                 
               Respondent properly recharacterized petitioner’s income as             
          wages and disallowed petitioners’ Schedule C deductions.                    
          Petitioners claim that they are entitled to deductions not                  
          previously claimed for business expenses, mortgage interest, and            
          real estate tax payments for 1996.  Respondent has conceded                 
          petitioners’ deductions for mortgage interest and real estate               
          taxes.                                                                      
               Petitioners claim that checks were written from their                  
          accounts for various expenses that would have been deductible if            
          they had itemized their deductions at the time of filing their              
          return.  Petitioners argue that respondent should have provided             
          these checks to the Court.  However, petitioners bear the burden            
          of showing their entitlement to deductions.  Rockwell v.                    






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011