- 2 - Respondent determined deficiencies and accuracy-related penalties under section 6662(a) in petitioners’ 1999 and 2000 Federal income taxes in the following amounts: Year Deficiency Sec. 6662(a) Penalty 1999 $6,783 $1,356.60 2000 10,565 2,113.00 The issues are (1) whether petitioners are entitled to deductions on Schedule C, Profit or Loss From Business, for expenses of $21,194 and $30,178 for the years in issue, and (2) whether petitioners are liable for the accuracy-related penalties under section 6662(a). Petitioners resided in Shelbyville, Tennessee, at the time the petition was filed. Background The facts may be summarized as follows. On Schedule C included in their 1999 and 2000 Federal income tax returns petitioners claimed the following deductions: 1999 2000 Car & truck expenses $10,844 $16,268 Mortgage interest -0- 6,767 Depreciation 4,125 -0- Supplies 750 375 Travel 2,750 1,265 Meals 325 238 Utilities 2,400 4,136 Business use of home -0- 1,129Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011