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deductibility of car and truck expenses of $1,708, depreciation
expense of $4,139, insurance expense of $694, and power tools
expense of $1,820.
After petitioners filed their 2002 return, in which they
claimed a refund, petitioners received a letter from respondent
informing them that respondent had not received schedules in
support of their 2002 tax return. Thereafter, petitioners
submitted a copy of their Schedule C to respondent but failed to
retain a copy for their own records. Shortly thereafter,
petitioners received a letter from respondent with a refund check
enclosed. Subsequently, respondent issued his notice of
deficiency.
At trial, respondent introduced into evidence a Schedule C
that Mr. Goode had reconstructed from amounts that were shown on
petitioners’ 2002 return. The original Schedule C petitioners had
prepared and submitted with their return, as well as the copy of
Schedule C that petitioners submitted to respondent in response to
respondent’s subsequent request, were not introduced. Respondent
asserts that petitioners did not submit Schedule C with their 2002
return and that the only Schedule C that respondent received is
the reconstructed version that was introduced into evidence at
trial.
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Last modified: November 10, 2007