- 6 - On a second Schedule C petitioner reported the income from Matheson as $5,778 gross receipts. The nature of the business was listed as “Trucking - General Freight & Postal” (Schedule C trucking). Petitioner claimed deductions on this Schedule C as follows: Expenses Amount Advertising $636 Car and truck expenses 2,307 Repairs and maintenance 475 Taxes and licenses 150 Meals and entertainment 756 Total 4,324 The notice of deficiency determined that petitioner was not entitled to the $22,312 expenses ($18,710 plus the $3,602 of home office expenses), claimed on the Schedule C pipefitting. No adjustment was made with respect to the income, except that respondent allowed petitioner a $299 self-employment tax deduction. Respondent made no adjustments to the Schedule C trucking in the notice of deficiency. In an answer filed with the Court, respondent claims an increased deficiency and seeks to correct adjustments from the notice of deficiency. Respondent claims that the gross receipts reported on the two Schedules C should be treated as salary or wages. Consistent with this, respondent seeks to reverse the $299 self-employment tax deduction previously allowed in the notice of deficiency. Finally, respondent claims that petitioner is not entitled to the $4,324 Schedule C trucking expenses.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011