David R. and Betty N. Lee (ages 45 and 46) are married and live at 641 Cody Way, Casper, WY
82609. David is a consulting engineer, while Betty is a paralegal.
They file a joint return and use
the cash basis for tax purposes.
Trained as a mining engineer, David has developed a considerable expertise in the
treatment and disposition of waste material.
He also is well versed in the various Federal
and state requirements for land reclamation projects.
David maintains a consulting
practice through which he renders advice on these matters.
Most of his clients are small
and medium-size mine owners and operators located in Wyoming and contiguous states
(e.g., Montana, Idaho, Utah).
Characteristically, David is retained by a client on a
contract fee basis and is reimbursed for all out-of-pocket expenses.
In performing his
services, David usually visits the job location and later submits his recommendations
along with a statement for his services and expenses.
David was paid the following amounts relating to the consulting practice in
Fees for services rendered
(taxis, airport limos, car rentals)
in the business transactions listed under item 1 above are the following:
Payment from Ibis Mining received in January 2008
for work performed in December 2007
Payment from Anhinga Mining received in
January 2009 for work performed in
Nonpayment by Cormorant Mining for work
performed in March 2008
David did not incur travel expenses in any of these engagements (i.e., the work was done
in his office).
As Cormorant Mining is in bankruptcy, David does not expect to collect any of
Other expenses paid by David in 2008 relating to his practice are summarized below:
Advertising in trade journals
Office supplies (including drafting materials)
Contribution to H.R. 10 (Keogh) plan
State occupation license
Subscriptions to trade journals
Membership dues to trade associations
Landscape models (amount paid to a topographer
for several land reclamation projects)
Business phone and Internet service
Premiums on medical insurance (covering self,
Spouse, and dependents)