- 14 - return. Respondent also disallowed the $1,005 net operating loss and imposed the accuracy-related penalty under section 6662(a). In the notice of deficiency issued to the OMK Company Trust, respondent disallowed all items deducted on the trust’s 1998 return, increasing the trust’s taxable income by $129,899. In the notice of deficiency issued to petitioners, respondent determined that the OMK trusts should be disregarded for Federal income tax purposes and consequently made the following adjustments to petitioners’ income: Item Adjustment Taxable Social Security $25,104 Capital gain 123,791 Self-employment tax (7,191) Itemized deductions (10,127) Standard deduction 8,800 Exemptions 5,400 Service income Mr. Kooyers 55,974 Fiduciary fees Mr. Kooyers (2,500) Service income Mrs. Kooyers 50,814 Fiduciary fees Mrs. Kooyers (2,500) Dividend income 2,089 Interest income 168,868 Respondent determined that the income from P.I. Ministries was subject to self-employment tax of $15,089. Respondent also determined that petitioners were liable for the civil fraud penalty under section 6663 or, alternatively, for an accuracy-related penalty under section 6662(a) and (b)(1) for negligence or disregard of rules or regulations.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011