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compute petitioners' tax liability. All required information was
supplied, including the attachment of petitioners’ Forms W-2
reflecting the amount of wages and withholding tax, petitioners’
marital and filing status, and the names and ages of their
dependents. Petitioners, however, placed zero in each place
provided for income items on the face of their Form 1040. Their
resulting tax was also shown as zero, and they claimed a refund
of the $7,819.21 in combined withholdings and an additional
$20,000 shown as attributable to 1995 estimated tax payments.
Petitioners did not have any estimated tax payments, so
respondent refunded most of the $7,819.21 to petitioners and
credited the remainder to a prior year's outstanding tax
liability. Petitioners also attached to their return several
pages of material that they had prepared from the research and
lecture handouts, explaining why they were not liable for tax.
The $20,000 amount shown as estimated payment was explained by
petitioners as the amount they had computed representing the
extra tax they had paid since 1990 solely because they had become
married.
OPINION
We found petitioners to be forthright and honest in their
testimony. It is also obvious that they were cooperative and
responsive to respondent’s agent’s examination of their tax
return and inquiries. Additionally, petitioners’ concern about
the “marriage penalty” is currently a matter which is being
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Last modified: May 25, 2011