Francis Z. Mischel - Page 12

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          Issue (4):  Additional Exemption for Mr. Mischel                            
               If a joint return is not filed, an exemption for a                     
          taxpayer's spouse is allowable under section 151(b) only if the             
          spouse has no gross income and is not the dependent of another              
          taxpayer.  For the reasons discussed in issue (6) infra, the                
          issue regarding the exemption for Mr. Mischel is moot.                      
          Issue (5):  Earned Income Credit                                            
               As relevant herein, section 32(d) provides that a married              
          individual is entitled to the earned income credit only if a                
          joint return is filed.  Because petitioner did not file a joint             
          return, she is not entitled to an earned income credit.                     
          Issue (6):  Addition to Tax Under Section 6651(a)(1)                        
               Section 6651(a)(1) imposes an addition to tax if a taxpayer            
          fails to file a timely return, unless the taxpayer's failure is             
          due to reasonable cause and not due to willful neglect.  The                
          addition is based on the amount required to be shown as tax on              
          the return.                                                                 
               Petitioner is not liable for the addition to tax under                 
          section 6651(a)(1) because the amount required to be shown as tax           
          on her return was zero.  The following calculation shows why this           
          is true:                                                                    
                    Income                       $9,626.50                            
                    Less: standard deduction     -3,000.00                            
          $6,626.50                                                                   
                    Less: personal exemption     -2,300.00                            
          $4,326.50                                                                   
                    Less: dependency exemptions  -6,900.00                            
                    Taxable income                   -0-                              
                    Tax                              -0-                              



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