Paul E. Charczuk and Victoria Charczuk v. Commissioner of Internal Revenue

BOHANON, District Judge.

Paul E. Charczuk and Victoria Charczuk jointly filed a Form 1040 for the taxable year 1977 reflecting income of $4,763.00. This amount was entered on the line for “business income” rather than on the line for “wages, salaries, tips and other employee compensation.” Attached to the taxpayers’ return were seven Form W-2 Wage and Tax Statements showing that the taxpayers received wages during 1977 totaling $12,276.00. Also attached was a Schedule C for each taxpayer claiming a “net profit” of $2,668.00 for Paul Charczuk and $2,095.00 for Victoria Charczuk. 1 On June 9,…