- 7 - taxable year 2000, petitioner did not maintain a tip diary or other log. Petitioner electronically filed a Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, for taxable year 2000. On March 30, 2002, petitioner filed a Form 1040X, Amended U.S. Individual Income Tax Return, for taxable year 2000. On his Form 1040X petitioner claimed an additional capital loss and itemized his deductions. These changes, which have been accepted by respondent, reduced the amount of tax shown by petitioner on the return. Petitioner did not declare any room service tips to the Hilton during taxable year 2000. Also, petitioner did not report additional tips, above the $784 of tips, previously discussed, on either his Form 1040EZ or his Form 1040X. In the notice of deficiency,2 respondent determined that petitioner failed to report tip income of $17,046, which was computed by multiplying petitioner’s hours worked, 1,919.6, by a rate of $8.88 per hour. At trial, however, respondent stated that it would be more appropriate to compute petitioner’s tip income for taxable year 2000 on the same basis as the room service food servers who participated in the Tax Compliance 2The notice of deficiency failed to take into account the additional capital loss, itemized deductions, and reduced tax as reported on petitioner’s Form 1040X. Respondent concedes that when any deficiency is computed, the computation should take into account these adjusted amounts.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011