Joel Rappaport - Page 7

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               JRC                                                                    
                    Rent                          $45,441                             
                    Marketing                     41,335                              
                    Professional fees             16,008                              
                    Auto rental and expenses      20,893                              
                    Total                         123,677                             
               RSC                                                                    
                    Rent                          $82,252                             
                    New York apartment tax        3,121                               
                    Lodging                       8,419                               
                    Professional fees             18,037                              
                    Transportation                24,905                              
                    Travel                        20,929                              
                    Marketing                     141,707                             
                    Management, staff, and        192,500                             
                    administration                                                    
                    Interest                      36,392                              
                    Total                         528,262                             
               Respondent asked petitioner to substantiate the deductions             
          that flowed through from JRC and RSC to his delinquent Form 1040            
          for 2001.  Petitioner did not do so.                                        
               Respondent filed an amendment to answer.  In it, respondent            
          asserts that petitioner’s 2001 deficiency and additions to tax              
          were larger than respondent had determined in the notice of                 
          deficiency on the basis of the amount of income first reported to           
          respondent in the Form 1040 petitioner had faxed to respondent.             
          Respondent also asserted in the answer that, although requested             
          to do so by respondent, petitioner did not provide documents                
          substantiating any deductions for 2001.                                     











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Last modified: May 25, 2011