- 3 - Mena’s Arco (Mena’s), in San Bernardino, California, as a sole proprietorship during the years in issue. Mena’s sold gasoline and other merchandise such as snacks, lottery tickets, cigarettes, and automotive parts and supplies. Mena’s received commissions on repair work completed by third parties. There were two public telephones on Mena’s premises that paid Mena’s a commission. Petitioners’ Federal Returns Petitioners filed Form 1040, U.S. Individual Income Tax Return, for 1993 reporting adjusted gross income of $12,282 and taxable income of $0. Petitioners claimed an earned income credit of $1,311. Petitioners filed a Schedule C, Profit or Loss From Business, reporting gross receipts of $4,963,722, expenses of $4,956,469, and a net profit of $7,253 that was reported on their Form 1040. Petitioners filed a Form 1040 for 1994 reporting adjusted gross income of $14,523 and taxable income of $0. Petitioners claimed an earned income credit of $1,904. Petitioners filed a Schedule C reporting gross receipts of $4,668,333, cost of goods sold of $4,219,896, expenses of $346,907, and a net profit of $15,627 that was reported on their Form 1040. Petitioners filed a Form 1040 for 1995 reporting adjusted gross income of $15,717 and taxable income of $0. Petitioners claimed an earned income credit of $2,214. Petitioners filed aPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011