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The Garritys filed a joint Federal income tax return for the
taxable year 1983. On this return, they reported the following
amounts of income and loss:5
Wages $46,158
Interest income 1,015
Subtotal 47,173
Arid Land loss (12,407)
Total income 34,766
Mr. Trimboli prepared the Garritys’ return for taxable year 1983.
Following the entry of the decision concerning the
partnership, discussed above, respondent adjusted the Garritys’
return by disallowing their claimed share of the partnership
loss, $12,407. In the statutory notice of deficiency which
provides the basis for our jurisdiction in this case, respondent
determined that the Garritys are liable for additions to tax
under section 6653(a)(1) and (2) in the respective amounts of
$184 and 50 percent of the interest due on a $3,672 deficiency.
Prior to issuing the notice of deficiency, respondent did not
make inquiries of the Garritys concerning the proposed
adjustments, nor did respondent provide them with an opportunity
for an administrative appeal.
Discussion
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the underpayment of tax if any part of the
5See supra note 3.
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