- 2 - 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 FormPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011