- 3 -
1990, 1991, and 1992) have been consolidated for purposes of
trial, briefing, and opinion pursuant to Rule 141(a).
All section references are to the Internal Revenue Code in
effect for the years in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure, unless otherwise
indicated. All dollar amounts are rounded to the nearest dollar,
unless otherwise indicated.
After concessions by the parties,2 the issues for decision
are: (1) Whether one half of petitioner's income for 1990,
1991, and 1992 is attributable to Carolyn Webb pursuant to the
operation of California community property law.3 We hold it is,
to the extent set out below. (2) Whether petitioner is liable
for self-employment tax for 1990, 1991, and 1992. We hold he is.
(3) Whether petitioners are each liable for additions to tax
2 For 1990, respondent concedes that she incorrectly
determined wages of $1,444 against petitioner that were actually
earned by him in 1991.
For 1991, respondent concedes that petitioner had $50,710 in
nonemployee compensation, rather than the $52,710 amount that
respondent determined in the notice of deficiency.
For 1990, 1991, and 1992, respondent concedes that
petitioners are each entitled to the standard deduction and one
personal exemption. Petitioner is also entitled to a deduction
for one half of the self-employment tax. These are mathematical
adjustments.
3 Respondent determined that Carolyn Webb is liable for tax on
$19,771 for 1990 and $26,379 for 1991, which is one half of
petitioner's income for those years. For 1992, respondent
concedes that Carolyn Webb is liable for tax on income of only
$27,038, which is the amount determined by respondent in the
notice of deficiency. Although this amount is substantially less
than 50 percent of petitioner's income for 1992, respondent does
not seek an increase in any of the deficiencies as asserted in
the statutory notice of deficiency sent to Carolyn Webb.
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