David M. and Audrey J. Fugitt - Page 8

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               The employee need not report on his tax return (either                 
               itemized or in total amount) expenses for travel,                      
               transportation, entertainment, and similar purposes                    
               paid or incurred by him solely for the benefit of his                  
               employer for which he is required to account and does                  
               account to his employer and * * * for which the                        
               employee is paid through advances, reimbursements, or                  
               otherwise, provided the total amount of such advances,                 
               reimbursements, and charges is equal to such expenses                  
               * * *.                                                                 
               At trial, respondent called Mr. Ruess and Mr. Osburn as                
          witnesses to corroborate the amount reported on the Form 1099               
          issued by Southeast to Mr. Fugitt for 1999.  In addition to the             
          testimony of these witnesses, records prepared and maintained by            
          Southeast were introduced that detailed the sales made by Mr.               
          Fugitt while employed by Southeast.  Mr. Osburn maintained a                
          contemporaneous record for Southeast at the time of each sale for           
          purposes of determining Mr. Fugitt’s sales commissions.  A                  
          summary of Mr. Fugitt’s sales commissions and per diem payments             
          for 1999 was prepared by Mr. Osburn, which further supported the            
          Form 1099 issued by Southeast.7                                             
               Mr. Fugitt did not keep, and thus did not produce, any                 
          records to prove his claims.  He does not contend that he                   
          provided Southeast with receipts to account for his actual                  
          expenses incurred while at the RV shows.  Mr. Fugitt has failed             
          to present any credible evidence that the amount reported on the            
          Form 1099 did not properly reflect income he earned while working           


               7  This evidence would satisfy any burden of production that           
          respondent may have had under sec. 6201(d).                                 





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