- 2 - Background Petitioner timely filed her 1998 Federal income tax return (return), reporting $14,379 of income and $6,918 of employment- related expenses. Petitioner reported her income, including her W-2, Wage and Tax Statement, income from USA Mobile, and also her employment-related expenses on Form 1040, Schedule C, Profit or Loss From Business, (Schedule C). She did not report her W-2 income on line 7 of Form 1040, U.S. Individual Income Tax Return, nor did she report any employment-related expenses on Form 1040, Schedule A, Itemized Deductions, (Schedule A). On October 3, 2000, respondent issued to petitioner a notice of proposed changes (30-day letter), in which respondent proposed to deny petitioner’s claimed Schedule C expense deductions and to increase petitioner’s tax liability by $1,292, plus interest. Petitioner’s first written response to respondent was a handwritten letter (first letter), dated October 3, 2000, stating, in part: On October 3, 2000, I spoke with * * * about the notice I received in the mail * * *. During our phone conversation he informed me on why the IRS had sent me this particular notice concerning my 1998 tax return. I, Jennifer Lynn Rusley, understand that my W2 income should be on line 7 and that my expenses should be on Schedule A via 2106. Respondent received this letter on October 6, 2000. Petitioner then sent to respondent a handwritten note (second letter) that she wrote on a copy of the 30-day letter. The second letterPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011