- 2 -
Respondent determined a deficiency in petitioner’s 1999
Federal income tax, an addition to tax under section 6651(a)(1),
and an accuracy-related penalty under section 6662(a) in the
respective amounts of $6,654, $308, and $1,331. The issues are
(1) whether petitioner had unreported income of $35,000; (2)
whether petitioner is liable for the accuracy-related penalty
under section 6662(a); and (3) whether petitioner is liable for
the addition to tax under section 6651(a)(1). Petitioner resided
in Orlando, Florida, at the time the petition was filed.
Background
The facts may be summarized as follows. In January 1999
petitioner associated with his brother in an air conditioning
installation and service business. Petitioner thought that the
business was a partnership. It appears, however, that it was
conducted as a corporation under the name of Treu Air, Inc. (Treu
Air). A cousin, Tom Burgess (Mr. Burgess), was also associated
with Treu Air. Treu Air treated petitioner, Mr. Burgess, and
petitioner’s brother as independent contractors. It appears that
each individual supplied his own truck and tools, but the
operating expenses of these items were paid by Treu Air.
Petitioner’s brother was in charge of the office and
maintained the company records, such as they were, and Mr.
Burgess and petitioner were engaged in the installation and
service of air conditioners. The company check register and
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011