Gerry M. Griggs - Page 3

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               Respondent determined a deficiency of $23,709 in                       
          petitioner’s Federal income tax for the year 2000, an addition to           
          tax under section 6651(a)(1) in the amount of $5,334.53, an                 
          addition to tax under section 6651(a)(2), and an addition to tax            
          under section 6654 in the amount of $1,275.16.  In the answer,              
          respondent conceded the section 6651(a)(2) addition to tax and,             
          pursuant to section 6214(a), claimed an increase in the section             
          6651(a)(1) addition to tax of $592.72.  In a trial memorandum,              
          respondent conceded the section 6654 addition to tax.2                      
               The issues for decision are:  (1) Whether petitioner is                
          entitled to claim a deduction for miscellaneous legal expenses on           
          Schedule A, Itemized Deductions, in an amount exceeding what was            
          allowed by respondent; (2) whether petitioner is entitled to                
          claim deductions for various trade or business expenses                     
          disallowed by respondent for two business activities of                     
          petitioner reported on separate Schedules C, Profit or Loss From            


               2 At the time the notice of deficiency was issued,                     
          petitioner had not filed his Federal income tax return for the              
          year at issue.  The notice of deficiency is based upon                      
          information returns filed by third-party payers for nonemployee             
          compensation, wages, and interest paid to petitioner.  Petitioner           
          does not challenge these determinations.  After the notice of               
          deficiency was issued, as stated in respondent’s brief,                     
          “petitioner provided respondent with his individual income tax              
          return for the 2000 taxable year.”  Respondent further stated on            
          brief:  “Petitioner has never provided an explanation as to why             
          his return was filed late.”  That statement appears to indicate             
          that petitioner’s return was processed as a filed return.                   
          Petitioner does not challenge the income determinations in the              
          notice of deficiency, and the issues essentially involve two                
          trade or business activities and itemized deductions.                       




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