- 2 - Respondent determined deficiencies of $13,627 and $12,787 in petitioners’ Federal income taxes for 1999 and 2000, respectively.2 The issues for decision are: (1) Whether petitioners are entitled to deductions for trade or business activities in connection with a legal/medical consultation activity of Rick D. Lamb (petitioner); (2) whether salary income earned by petitioner as an employee can be considered as trade or business income of the legal/medical consultation activity; and (3) whether petitioner is entitled to a deduction for job search expenses. Some of the facts were stipulated. Those facts, with the annexed exhibits, are so found and are made part hereof. Petitioners’ legal residence at the time the petition was filed was Portland, Oregon. During the years at issue, petitioners were residents of Helena, Montana.3 2Rick D. Lamb (petitioner) and Susan L. Story were married to each other during the years in question but were divorced at the time of trial. Susan L. Story did not appear at trial. Petitioner advised the Court that his former spouse had knowledge of the trial and agreed that petitioner would present the case on their joint behalf. Respondent did not move to dismiss for failure to prosecute as to Susan L. Story. 3Generally, the burden of proof is on the taxpayer to show that the determinations in the notice of deficiency are in error. Rule 142(a). Sec. 7491, under certain circumstances, shifts the burden of proof to the Commissioner. However, for the burden to be placed on the Commissioner, the taxpayer must comply with the substantiation and record-keeping requirements of the Internal Revenue Code. Sec. 7491(a)(2)(A) and (B). On this record, petitioners have not wholly satisfied that requirement; (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011