- 3 - certificate of deposit (CD) at Asheville Savings. Petitioner was required to pay a penalty of $115 to Asheville Savings because of the premature withdrawal of funds from his CD. Petitioner claims that he did not owe any unpaid Federal income taxes for 1985; however, at the time of trial, petitioner had been unsuccessful in recouping the $1,562 that he alleges was wrongfully seized by respondent. On the joint Federal income tax return filed by petitioner and his wife for 1994,2 petitioner reported $65,514 in wage income, $139 in taxable interest income, $1,350 in taxable refunds of State and local income taxes, $1,800 in taxable pension income, and a $7,140 loss from rental real estate, for a total income of $61,663. Petitioner claimed a $2,000 deduction for a contribution to an IRA and an $8,000 deduction for alimony paid, resulting in an adjusted gross income of $51,663. In the notice of deficiency, respondent determined that petitioner received $19 in unreported taxable interest income and a $500 unreported taxable distribution from an IRA, based on information reported to respondent by the payor. Respondent also disallowed petitioner's $2,000 IRA contribution deduction and made computational adjustments to petitioner's miscellaneous itemized deductions. Respondent allowed petitioner a $115 2 Although the notice of deficiency was issued to petitioner and his wife, the petition was filed only by petitioner. Petitioner's wife is not a party in this proceeding.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011