- 3 - $465 per month. During 1991, 1992, and 1993, Linda received wages in the amounts of $37,882, $30,085, and $27,191, respectively. Petitioner's employment was "sporadic". He had income in the amounts of $4,013 for 1992 and $2,203 for 1993. During 1991, when petitioner reentered college, Linda began embezzling funds from Datanet. She embezzled $17,450, $25,997, and $28,379 during 1991, 1992, and 1993, respectively. These funds were spent on food, clothing, rent, furniture, and other living expenses, including expenses for petitioner's education. Petitioner and Linda took vacations to the beach each year and also a trip to Colorado. Linda was arrested in September 1993, and convicted on March 25, 1994. Petitioner and Linda filed joint Federal income tax returns for each of the years in issue reporting wages discussed above. Petitioner and Linda did not report the amounts embezzled from Datanet. Petitioner and Linda deducted losses from the alleged accounting service operated by Linda. These losses were fictitious. Respondent determined that the embezzled funds constituted gross income and disallowed the losses. Respondent also determined that accuracy-related penalties for negligence were due. Petitioner does not contest any of the adjustments, but rather contends that he is entitled to relief of liability under the so-called innocent spouse provisions contained in section 6013(e). Section 6013(a) permits a husband and wife to file a joint income tax return. When a joint return is filed, both spousesPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011