- 2 -
respectively.2 The issues remaining for our consideration are:
(1) Whether Dennis J. Kraus (petitioner) was entitled to report
income and expenses on a Schedule C, Profit or Loss From
Business; (2) whether petitioner is entitled to use cost of goods
sold in computing his gross income; (3) whether petitioner is
entitled to claim deductions for an office in his home; (4)
whether petitioner is entitled to certain deductions claimed on
Schedules C; (5) whether petitioners are liable for accuracy-
related penalties for negligence under section 6662(b)(1); and
(6) whether the burden of proof is on or shifted to respondent
under section 7491.
FINDINGS OF FACT3
At the time their petition was filed, petitioners were
husband and wife and resided at Huntington Beach, California.
Petitioner was a member of the International Brotherhood of
Teamsters, Bakery Drivers Local Union No. 952 (Local 952). He
delivered bakery goods provided by the Millbrook Bread division
of Interstate Brands Corp. (IBC). IBC was in the business of
1(...continued)
indicated.
2 Respondent determined that petitioners were liable for
gross valuation misstatement penalties under sec. 6662(h). On
brief, respondent conceded that his determination with respect to
that penalty was erroneous and that petitioners are not liable
for any penalty under sec. 6662(h).
3 The parties’ stipulated facts are incorporated by this
reference.
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