Edgar B. and Monica Alacan - Page 3

                                        - 3 -                                         
               tax expenses for the 1999 tax year. * * * A detailed list of           
               all transactions will be provided if needed by request.                
          Petitioners also claimed $40,248 as “Unreimbursed employee                  
          expenses” on the Schedule A.                                                
               On April 3, 2002, respondent sent petitioners a notice of              
          deficiency in which respondent determined a deficiency of                   
          $87,751.  Respondent disallowed petitioners’ exclusion from gross           
          income of $236,761, explaining that the amount “has been adjusted           
          to the amount verified.”  Further, respondent disallowed                    
          petitioners’ claimed employee business expense of $40,248                   
          reported on the Schedule A, explaining that “you did not                    
          establish that the business expense shown on your tax return was            
          paid or incurred during the taxable year and that the expense was           
          ordinary and necessary to your business”.                                   
               On May 28, 2002, the Court filed petitioners’ petition                 
          disputing $39,826 of respondent’s disallowance of business                  
          expenses and the exclusion from gross income of $236,761.                   
          Petitioners argued that they could substantiate the disallowed              
          amounts.                                                                    
               On June 19, 2003, respondent filed an amended answer with              
          leave of the Court in which respondent alleged that the                     
          deficiency of $87,751 should be increased to $93,923 to reflect             
          petitioners’ receipt of a refund of their 1998 State and local              
          income taxes plus interest income on such refund which was                  
          unreported as income on the 1999 tax return.                                





Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011