- 2 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011