- 2 - Respondent determined a $9,303 deficiency in petitioner’s 2002 Federal income tax and a $1,982 addition to tax under section 6651(a)(1). The issues for decision are: (1) Whether petitioner qualifies as a head of household; (2) whether petitioner is entitled to an earned income credit; (3) whether petitioner can deduct $28,600 for business-related expenses; and (4) whether petitioner is liable for an addition to tax under section 6651(a)(1) for failure to file a timely tax return.1 Background Some of the facts have been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time the petition was filed, petitioner resided in Orlando, Florida. Petitioner lived in Massachusetts in 2002 with his wife and son. Petitioner worked as a taxi cab driver that year and leased a cab from a company in Boston. Petitioner was responsible for purchasing gasoline for the cab. Petitioner and his wife did not file a joint 2002 Federal income tax return. Petitioner instead filed as a “head of household” and claimed an earned income credit with respect to his son. Petitioner reported the income and expenses related to the taxi cab on Schedule C, Profit or Loss From Business. 1 Adjustments not addressed in this opinion are computational.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011