- 4 -
then recalculated petitioners’ tax liability as $3,679 and, in
July 2000, issued a refund check in the amount of $580.99.5
Upon receiving the refund check, petitioners questioned the
matter by contacting one of respondent’s representatives at an
“800 number”. The representative agreed with petitioners that
respondent had made a mistake and requested that petitioners
return the refund check. Petitioners did so. However, a couple
of months thereafter, by letter dated September 7, 2000, another
of respondent’s representatives advised petitioners as follows:
We received the returned refund check for $580.99. Our
records show you incorrectly figured your pensions and
annuities as taxable social security. The refund is
correct and will be reissued.
If you have any questions, please call Ms. Robbin
Cooley * * * .
Petitioners contacted Ms. Cooley, who insisted that
petitioners had incorrectly reported their Social Security
benefits as taxable. Thereafter, upon receipt of the second
refund check, petitioners cashed it.
Ultimately, well over a year later, respondent concluded
that petitioners had correctly reported their Social Security
benefits and that respondent had erred in issuing petitioners a
5 The amount of $580.99 was calculated as follows:
Liability reported and paid per return $4,256.00
less: Liability as recalculated by respondent -3,679.00
Decrease in tax 577.00
plus: Interest due petitioners 3.99
Amount of refund check 580.99
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Last modified: May 25, 2011