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Respondent determined a deficiency in petitioners' 1991
Federal income tax in the amount of $882 and an accuracy-related
penalty pursuant to section 6662(a) in the amount of $176.
The issues for decision are: (1) Whether $3,150 of Social
Security disability benefits received by petitioners during 1991
constitutes gross income; and (2) whether petitioners are liable
for the accuracy-related penalty pursuant to section 6662(a).
Some of the facts have been stipulated and are so found.
The stipulations of fact and attached exhibits are incorporated
herein by this reference. Petitioners resided in Des Moines,
Washington, on the date the petition was filed in this case.
Hereinafter, references to petitioner in the singular are to
petitioner Roger G. Maki.
In 1991, petitioner received Social Security disability
benefits in the amount of $6,299. On their 1991 Federal income
tax return, petitioners identified this amount as "Social
Security benefits" with an added notation "Disability payments
see enclosure" on line 21a of the return; however, the amount was
not entered as taxable income on the adjacent line 21b of
petitioners' income tax return. Petitioners' adjusted gross
income for 1991, without the inclusion of the Social Security
disability benefits, was $53,321.
Petitioner contends that his Social Security disability
benefits are not taxable. Petitioner's position is based on Form
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Last modified: May 25, 2011