Wilson D. Watson - Page 5




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          Watson and Associates of Midland, Inc. (Watson, Inc.), reporting            
          the payment of $48,000 in wages to petitioner and withheld income           
          and Social Security taxes of $1,845 and $2,976, respectively                
          (both of which amounts were reflected on the 1998 Form 1040 and             
          included in the total amount for which petitioner sought refund),           
          and (2) a Form 1099-R, Distributions From Annuities, Retirement             
          or Profit Sharing Plans, IRAs, Insurance Contracts, etc., for               
          1998 from “Mobil Oil Corp Inc Pension Plan” (Mobil Pension Trust)           
          reporting a $1,114.04 distribution to petitioner, the amount                
          petitioner reported on line 16b of the 1998 Form 1040.  The 1998            
          Form 1040 does not include $80.22 of interest reflected on a Form           
          1099-INT, Interest Income, issued to petitioner by Amerus Life              
          Insurance Company, which form was not attached to the 1998 Form             
          1040.  Petitioner signed the 1998 Form 1040 under the preprinted            
          jurat,3 but, just above his signature, he wrote “UNDER PROTEST              
          Without Prejudice”.  Also, on line 7 of the 1998 Form 1040,                 
          petitioner wrote “See attached letter to the Social Security                
          Administration”.  In that letter, dated October 4, 1999, and in             
          an attachment to it (a letter from petitioner to Watson, Inc.,              
          dated January 11, 1998 (the Watson, Inc., letter)), petitioner              
          argues, on the basis of regulations and cases cited therein, that           

               3  The jurat is the portion of the Form 1040 which reads:              
          “Under penalties of perjury, I declare that I have examined this            
          return and accompanying schedules and statements, and to the best           
          of my knowledge and belief, they are true, correct, and                     
          complete.”                                                                  






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