- 2 -
Respondent determined for 2000 a deficiency in petitioner’s
Federal income tax of $16,166.57 and an accuracy-related penalty
of $3,233.40 under section 6662(a).
After concessions,1 the issues for decision are whether
petitioner: (1) Is entitled to claimed deductions on Schedule C,
Profit or Loss From Business, in excess of those allowed by
respondent, (2) is entitled to charitable contribution deductions
on Schedule A, Itemized Deductions, in excess of those allowed by
respondent, and (3) is liable for an accuracy-related penalty
under section 6662(a).
Background
The stipulation of facts and the exhibits received into
evidence are incorporated herein by reference. Petitioner
resided in Houston, Texas, at the time the petition was filed.
During 2000, petitioner was a mechanical engineer employed
by Lockheed Martin Corporation. Attached to his 2000 Form 1040,
1Respondent concedes that petitioner: (1) Does not need to
include in gross income for 2000 an IRA distribution of $6,365;
(2) is not liable for a 10-percent additional tax for an early
distribution from a qualified retirement plan of $637; (3) is
allowed a deduction for charitable contributions on Schedule A of
$5,993; (4) is allowed a deduction for investment interest on
Schedule A of $1,145; and (5) is allowed an adjustment to gross
receipts of $4,052 for cost of goods sold. Respondent also
concedes that petitioner is allowed additional deductions of $246
and $176 on Schedule C, but it is unclear to what expenses these
additional deductions relate. Petitioner concedes in his
petition that interest of $15,267 and utilities of $650 should be
deleted from Schedule C. The parties also agree that petitioner
must include as income dividends of $765 for 2000.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011