- 3 -- 3 -
for finding and hiring instructors. As part of her
responsibilities, Ms. Potter promoted the after-school program
through advertising. In 1999, Ms. Potter received checks from
Smith, payable to her, in the amount of $3,038. Petitioners
received a Form 10992 on which Smith reported to the Internal
Revenue Service (IRS) that Ms. Potter received $3,038 of income
in 1999. Petitioners did not report this amount as income on
either their 1999 Form 1040, U.S. Individual Income Tax Return,
or their 1999 Form 1040X, Amended U.S. Individual Income Tax
Return.
In March 1999, both Ian Potter, Ms. Potter's father, and her
sister Susan Potter became seriously ill. Petitioners determined
that it was necessary to travel to Florida so they could tend to
their ill relatives. Petitioners withdrew $14,389 from a
qualified retirement plan (IRA) to help pay for medicines, food,
their flights to and from Florida, and other expenses related to
Mr. Potter's and Susan's illnesses. Mr. Potter died on June 29,
1999, and Susan died on July 31, 1999. Petitioners did not pay
rent for Mr. Potter or Susan, and they did not keep track of
their expenses while in Florida.
Petitioners timely filed their 1999 Federal income tax
return. Petitioners filed a Form 1040X on or about April 16,
2 A copy of the form was not produced at trial. The Court
assumes the form was a Form 1099-MISC, Miscellaneous Income.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011