- 3 -
Petitioner requested an extension of time to file a Form
1040, U.S. Individual Income Tax Return (return), for 1999 which
extension was approved to August 15, 2000. On January 16, 2001,
petitioner untimely filed his return for 1999, attaching the
relevant Schedule C. Petitioner prepared the return himself. He
admitted it was a mistake to use the Sax-Brook name on his
Schedule C because Sax-Brook was inactive in 1999 and remained
inactive until the time of trial. Petitioner claimed his
business activities in 1999 were those of a lawyer.
Section 7491 does not apply in this case because petitioner
did not meet the substantiation requirements.
Petitioner received payments in the amount of $11,154 from
the Social Security Administration in 1999. Petitioner failed to
include any portion of these payments on his 1999 return.
Petitioner was the president of Sax-Brook from 1994 to date
of trial. On September 9, 1994, petitioner and a business
associate, Mr. Robert L. Timbrook, organized the Sax-Brook
corporation.
Sax-Brook was created in order to manufacture and sell
building panels that could be used in new home construction. Mr.
Timbrook had invented a panel made of inexpensive materials to be
used in the construction of houses. Because the inexpensive
materials would replace lumber, including plywood, used in
building a house, it was projected to be cost-effective.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011