- 2 -
Respondent determined deficiencies in petitioner’s Federal
income tax of $4,246 and $135 and accuracy-related penalties
under section 6662(a) of $849.20 and $27 for 2002 and 2004,
respectively. Respondent concedes both the deficiency and the
section 6662 accuracy-related penalty for 2004.
After concessions by petitioner,2 the issues for decision
are: (1) Whether petitioner is entitled to deduct $15,686 for
business expenses claimed on her Schedule C, Profit or Loss From
Business, for 2002; and (2) whether petitioner is liable for an
accuracy-related penalty pursuant to section 6662 for 2002.3
Background
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated by this reference. When the petition was filed,
petitioner resided in Philadelphia, Pennsylvania.
Petitioner was an IRS employee in 2002 and had received
training in tax law in the early 1990s. Petitioner claims that
she also operated an event-planning business in 2002. Petitioner
reported $400 of gross receipts attributable to the alleged
2 Petitioner concedes she is not entitled to deduct $4,746
for medical expenses before the 7.5-percent adjusted gross income
limitation or $2,216 for charitable contributions claimed on her
Schedule A, Itemized Deductions, for 2002.
3 Respondent adjusted petitioner’s retirement savings
credit, education credit, and earned income credit in 2002 as a
result of the change in petitioner’s adjusted gross income.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: November 10, 2007