- 6 -
Petitioners claimed that all receipts and documents which
substantiated the aforesaid job seeking expenses were destroyed
by water damage that occurred in their San Francisco home.
Petitioners filed a joint Federal income tax return for the
taxable year 1998, which included a Schedule A, Itemized
Deductions. Petitioners’ Schedule A listed miscellaneous
itemized deductions, which included “job seeking expenses” in the
amount of $14,971.38.
Petitioners testified that they mailed their 1998 Federal
income tax return to the Internal Revenue Service (IRS) office in
Fresno, California, in October of 1999, after the expiration of
an extension date. However, respondent contends that petitioners
mailed their return on or about April 4, 2000, and said return
was received by the IRS on April 6, 2000.
In the notice of deficiency for the taxable year 1998,
respondent determined that petitioners: (1) Are not entitled to
deduct the $14,971.38 claimed as “job seeking expenses”; and (2)
are liable for an addition to tax of $488.25 pursuant to section
6651(a)(1) for failure to file their 1998 tax return by the
prescribed due date.
Miscellaneous Itemized Deduction--Job Seeking Expenses
Section 162(a) allows a deduction for ordinary and necessary
business expenses paid or incurred during the taxable year in
carrying on any trade or business. To be “ordinary” the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011