- 4 - petitioner’s 1992 return based in part upon the information reported on the Forms 1099 and other information provided by petitioner. Ultimately, petitioner’s 1992 Federal income tax return was filed on August 12, 1998. The return includes a Schedule C, Profit or Loss From Business, on which the following items are reported: Income $34,712 Expenses: Car and truck 3,000 Rent or lease 4,000 Repairs, etc. 3,000 Supplies 1,000 Net profit 23,712 The income reported on the Schedule C represents the sum of the amounts reported on the Forms 1099. No other income is reported on petitioner’s 1992 return. The net profit reported on the Schedule C is treated as net earnings from self-employment. The Federal income tax liability of $5,769 reported on the return consists of a section 1 income tax liability of $2,419 and a $3,350 section 1401 tax on self-employment income. The section 1 income tax liability takes into account petitioner’s filing status as single, a personal exemption deduction, the appropriate standard deduction, and a deduction for one-half of the section 1401 tax.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011