- 8 -
November 10 and December 17, 1999.7 With respect to the increase
in taxable income, the letter advised that the $9,868 increase in
taxable income (from the reported $43,531 to $53,399) consisted
of the following items:
(i) a $1,000 increase in income as a result of a
discrepancy in that amount between the figure entered
for adjusted gross income at the bottom of the first
page of the 1999 return ($73,273) and the figure
entered for adjusted gross income at the top of the
second page ($72,273);
(ii) a $320 increase in income resulting from the
disallowance of a casualty or theft loss in that amount
claimed on the 1999 return, on the grounds that the
claimed loss did not consider the limitation of such
losses to amounts in excess of 10 percent of adjusted
gross income;
(iii) a $20 increase in income resulting from the
disallowance of a miscellaneous deduction for "P.O.
Box" claimed on the 1999 return, explained in the
letter as follows: "Misc Deductions: A post office box
is not a deductible expense";
(iv) a $8,528 increase in income resulting from the
disallowance of a miscellaneous deduction for "Lawyers"
claimed on the 1999 return, explained in the letter as
follows: "Other Misc Deductions: Lawyers are not a
deductible expense. They are deductible if the fees
are paid to produce or collect taxable income or are in
connection with the determination, collection, or
refund of a tax."
On February 7, 2001, respondent issued to the Freijes a
Final Notice of Intent to Levy and Notice of Your Right to a
Hearing for income tax, interest, and penalties for taxable years
7 As noted, the Forms 4340 in the record state that the
Freijes made remittances during 1999 that totaled $15,087;
however, respondent applied $6,500 and $2,587 against the
Freijes' 1997 and 1998 liabilities, respectively.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011