- 6 -- 6 - undocumented testimony. Tokarski v. Commissioner, 87 T.C. 74, 77 (1986). Smith issued a Form 1099 stating that Ms. Potter received $3,038 in 1999. Ms. Potter testified that she was not compensated by Smith for her involvement in the after-school program. She does, however, admit to receiving "reimbursement checks". Other than their testimony, petitioners have presented no evidence to substantiate their position that the money from Smith represented reimbursements for Ms. Potter's out-of-pocket expenses. Ms. Potter testified that the checks from Smith were "to cover the cost of the advertising and the, the copying costs, the color copying costs, of all the programs that I was trying to run." She claims to have given the receipts to a secretary, and that a treasurer of the Smith PTO wrote the reimbursement checks. Mr. Palomo testified that when preparing their Federal income tax return he ignored the Form 1099 petitioners received because, based on his mental calculations, "it was going to be a wash." In a prior hearing before this Court, Mr. Palomo agreed to do his best to provide names, telephone numbers, and addresses of people involved with the Smith PTO. At no point, however, did petitioners provide the name or names of anyone at Smith to verify their claims. Petitioners have not provided either the Commissioner or the Court with any evidence substantiating the existence of out-Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011