- 2 - Respondent determined deficiencies in petitioner's Federal income taxes of $4,191 for 1998 and $3,073 for 1999. After concessions,1 the issue remaining for decision2 is whether petitioner is entitled to costs of goods sold and deductions on Schedule C, Profit or Loss From Business, in excess of those allowed by respondent. Background The stipulation of facts and exhibits received into evidence are incorporated herein by reference. Petitioner resided in Chico, California, at the time the petition was filed. During 1998 and 1999, petitioner did sales work for Norfield Industries in Chico, California. During those years, petitioner was also engaged as a distributor of "Herbalife" products. On her 1998 and 1999 Forms 1040, U.S. Individual Income Tax Return, petitioner reported income and expenses from her Herbalife activities on Schedules C. Petitioner described her activity as "Nutrition Consultant." 1In the notice of deficiency, respondent disallowed auto expenses of $1,863 for 1998 and $3,495 for 1999, and other interest expenses of $731 for 1998 and $83 for 1999. Additionally, respondent determined that petitioner received advance earned income credit payments during 1998 and 1999 in the amounts of $1,173 and $1,126, respectively. Petitioner did not report the 1998 advance earned income credit payment on her tax return. Petitioner has conceded these issues. 2The amounts of any liabilities for and deductions of self- employment taxes depend on the resolution of the other issues in this case.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011