Court Case Brief Case Study

Open, View, and/or
Download this Document

Total Length: 579 words ( 2 double-spaced pages)

Total Sources: 0

Page 1 of 2

Dennis L. Hayden and Sharon E. Hayden vs. Commissioner of Internal Revenue (CA-7), U.S. Court of Appeals, 7th Circuit, 99-2520, 2/11/2000, 204 F3d 772.

FACTS

Plaintiffs, Dennis and Sharon Hayden, married, were sole partners of the proprietorship called "Leddos Frozen Yogurt, LLC." In 1994, Leddos purchased equipment for $26,650 and on the tax return for 1994 tax year reported an income loss of $2,224, with total deduction for $13,294 and a loss of $15,718, Under section 179, on the Depreciation and Amortization form, Leddos reported the expense of $17,500 as deduction of the $26,650 invested in equipment. The Haydens reported this figure as a flow through to their 1994 federal income tax return.

During that same period, Dennis Hayden operated an accounting business as sole owner (Hayden & Associates, CPAs). Dennis Hayden paid the Hayden's 1993 income tax liability of $9,284 from the bank account of his accounting firm under the portion that was designed for "payroll" taxes.

Stuck Writing Your "Court Case Brief" Case Study?

View All Our Example Court Case Brief Case Study

Have A Custom Example Essay Written

On the Hayden's joint 1994 income tax return, they added the $9,284 of the previous year and deducted $17,630 as "pay roll" taxes for the accounting business.

On November 26, 1997, the Commissioner of Internal Revenue determined that he Hayden's owned a deficiency of income tax to the amount of $3,784, plus $292,60 for the 1994 tax year. The Commissioner also overruled the $17,500 that had been claimed under section 179 deduction as well as the $9,284 claimed as "payroll taxes' on the 1993 personal income tax return. An accuracy-related penalty was added, and the Haydens filed a petition with the Tax Court contesting the deficiency as regards the section 179 deductions and the accuracy-related penalty.

The Tax Court had upheld the ruling of the Commissioner and resulting penalty, so the….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Court Case Brief" (2011, November 20) Retrieved May 16, 2024, from
https://www.aceyourpaper.com/essays/court-case-brief-47710

Latest MLA Format (8th edition)

Copy Reference
"Court Case Brief" 20 November 2011. Web.16 May. 2024. <
https://www.aceyourpaper.com/essays/court-case-brief-47710>

Latest Chicago Format (16th edition)

Copy Reference
"Court Case Brief", 20 November 2011, Accessed.16 May. 2024,
https://www.aceyourpaper.com/essays/court-case-brief-47710
   

Open, View, and/or
Download this Document
order custom essay example