- 4 - Deductions, and on their Schedule C, Profit or Loss From Business. By letter dated September 14, 2004, respondent sent to petitioners a letter of proposed deficiency (30-day letter), along with an examination report. The 30-day letter notified petitioners that they had a right to request a conference with an Appeals officer if they did not agree with the changes shown on the examination report. By letter dated September 27, 2004, TCO Harris informed petitioners that he was reluctant to issue a statutory notice of deficiency without a reply to the proposed changes from petitioners. He offered petitioners an opportunity to discuss the proposed adjustments in the examination report. TCO Harris also stated in the letter that he would recommend the issuance of a notice of deficiency if petitioners failed to respond. By a notice of deficiency dated January 4, 2005, respondent determined for 2002 a deficiency in petitioners’ Federal income tax of $14,220 and a section 6662(a) accuracy-related penalty of $2,844. The notice also asserted computational adjustments for tuition and fees, self-employment adjusted gross income, self- employment deduction, and an additional tax for early withdrawal from an individual retirement account. In early January of 2005, petitioners retained a C.P.A., Martin A. Kapp (Mr. Kapp), to file a petition with the Court and to assist them in negotiating with respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011