Robert C. and Patricia C. Humphrey - Page 8

                                        - 8 -                                         
          income of $244,190 rather than the $20,243,699 initially                    
          reported.  Other than wage income, the 2000 amended return                  
          reported the same income and deductions as initially reported,              
          resulting in regular taxable income of $3,997,850.  The 2000                
          amended return reported a reduced regular tax of $852,586, AMT of           
          zero, self-employment tax of $429, and after deducting the same             
          foreign tax credit and total payments as initially reported,                
          claimed a refund of $4,815,148.  The 2000 amended return was not            
          accepted by the Internal Revenue Service.                                   
               On April 15, 2003, petitioner filed a separate Form 1040X              
          for 2000 containing the following statement:                                
               The taxpayer’s original return erroneously reported an                 
               amount due based on an incorrect valuation and/or                      
               inclusion of stock options (both qualified and non                     
               qualified) and the incorrect application of the AMT net                
               operating loss and AMT credit.  A list of the legal                    
               grounds supporting the amended return’s valuation of                   
               stock options and/or exclusion of such options from                    
               income along with the correct application of the AMT                   
               net operating loss and AMT credit is attached to this                  
               form.  The application of the attached legal arguments                 
               to the taxpayer’s stock option transactions will result                
               in a change in the amount due for lines 1, 5 through                   
               10, and 19 through 24 on the front of this 1040X form.                 
               The exact amount of the refund will be determined                      
               pending the final determination of facts and the                       
               release of a technical advice memo or court decision.                  




               4(...continued)                                                        
          rules or regulations or to a substantial understatement of income           
          tax for non-tax-shelter items if the return position has a                  
          reasonable basis.                                                           





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011