Lindsey C. Nelson - Page 3

                                                - 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 spouses                             





Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011