- 2 - Year Deficiency Penalty 1991 $4,599 $920 1992 5,879 1,176 1993 5,641 1,128 At the time the petition was filed, petitioner resided in Greensboro, North Carolina. The deficiencies result from the inclusion in income of funds embezzled by petitioner's wife, Linda, in the respective amounts of $17,450 in 1991, $25,997 in 1992, and $28,379 in 1993, and the disallowance of losses in the respective amounts of $3,345 in 1991, $3,213 in 1992, and $2,055 in 1993 claimed on the returns from a bookkeeping business operated by Linda. The sole issue is whether petitioner is entitled to relief as a so-called innocent spouse pursuant to section 6013(e)(1). The facts may be summarized as follows. Petitioner and Linda married in 1988. They had a child in 1992. Petitioner had worked as a "general superintendent" for several construction companies. Petitioner dropped out of college in 1979 but went back in the fall of 1991 as a full time student majoring in civil engineering with a stipend that included tuition and books. Linda worked full-time as a bookkeeper/accountant for Datanet Services, Inc. (Datanet), and essentially supported the family. Linda was approximately 28 years old during 1991. Petitioner was apparently a few years older. From the beginning, petitioner and Linda had financial difficulties. In 1988, they sought protection under chapter 13 of the Bankruptcy Code. The bankruptcy plan required them to payPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011