- 5 - schedules was for petitioner’s return preparation business. This Schedule C reported $550 of gross receipts and a net loss of $20. The other Schedule C listed the proprietor as “D. Stussy, as successor per IRC section 691(b)” and reported that the proprietor’s principal business activity was “Artist”. This Schedule C reported no gross receipts and one expense. This expense, in the amount of $4,665, was Federal and State income tax deficiency interest paid as to petitioner’s 1992 through 1995 personal income tax returns. Petitioner’s income tax liabilities for 1992, 1993, and 1994 were determined by respondent on the basis of this Court’s memorandum opinion in Stussy v. Commissioner, T.C. Memo. 1997-293. OPINION 1. Burden of Proof The parties dispute who bears the burden of proof. We need not and do not decide that issue. The record is sufficient for us to decide this case on its merits. 2. Interest Petitioner claims as a sole proprietorship expense a deduction for interest that he paid with respect to his personal Federal and State income taxes. Petitioner recognizes that the Court of Appeals for the Ninth Circuit, the court to which this case is appealable, held in Redlark v. Commissioner, 141 F.3d 936 (9th Cir. 1998), revg. and remanding 106 T.C. 31 (1996), thatPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
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