- 4 - Trust, with a small portion conducted under the name Bioactive Kansas Trust. During 1999, the business was conducted through retail stores in Kansas and one store in Texas. Separate books and bank accounts were maintained for the Kansas stores and the Texas store. Bioactive Kansas Trust filed a Form 1041, U.S. Income Tax Return for Estates and Trusts, for 1999. On Schedule C, Profit or Loss From Business, Bioactive Kansas Trust reported gross receipts of $66,003. The gross receipts reported by Bioactive Kansas Trust were attributed to petitioners in the statutory notice of deficiency sent to petitioners. Stejskal Enterprises Trust filed a Form 1041 for 1999. On Schedule C of that return, Stejskal Enterprises Trust reported gross receipts of $781,121 and cost of goods sold of $397,751. The cost of goods sold amount was computed on the Schedule C as follows: Inventory at beginning of year $171,607 Purchases 448,052 Total 619,659 Less: Inventory at end of year 221,908 Total cost of goods sold $397,751 The trial balance for Stejskal Enterprises Trust as of December 31, 1999, showed purchases in the amount of $397,751. The beginning inventory reported on Schedule C coincided with the amount reported at the end of 1998. Neither the trial balance nor any other record produced by petitioners showed an amount forPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011