- 3 -
income tax for any taxable year * * * shall consider such
facts with relation to the taxes for other years * * * as
may be necessary correctly to redetermine the amount of such
deficiency, but in so doing shall have no jurisdiction to
determine whether or not the tax for any other year * * *
has been overpaid or underpaid.
In sum, this Court shall consider facts with relation to other
years to the extent we deem necessary to redetermine petitioners’
income tax liability for the year before the Court. The Court
overruled petitioner’s objections to the questions posed and
directed petitioner to respond. He “respectfully” refused. By
refusing to answer questions during cross-examination, petitioner
deprived respondent of the right to cross examine; therefore,
petitioner’s direct testimony was stricken. See United States v.
Cardillo, 316 F.2d 606, 611 (2d Cir. 1963).
Background
Petitioners mailed a check for $10,000 dated April 13, 1995,
to the Internal Revenue Service (IRS). The check did not
reference a specific tax year, but the word “taxes” is reflected
on the memo line of the check. The IRS treated this payment as a
“subsequent payment” for petitioners’ 1994 taxes.
Petitioners’ 1995 joint tax return, bearing a date by their
signatures of October 14, 1996, reflects Federal income tax
withheld in the amount of $1,308.28, and a “1995 estimated tax
payments and amount applied from 1994 return” of $10,000. The
return shows a total tax liability of $7,588.
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011