- 8 - 3 Only half of this amount ($3,569.85) was included in respondent’s adjustment to income in statutory notice of deficiency because J. Campbell reported other half as income. 4 Sec. 6012(d) requires that taxpayers report all interest received or accrued that is exempt from the tax imposed by ch. 1. “T. Collins” was petitioner’s daughter, Mrs. Collins. “D. Collins” was petitioner’s granddaughter, Mrs. Collins’ daughter. Mrs. Collins was also listed as an alternate payee under the name “T.H. Coleman”. Mrs. Collins reported $445.09 of interest on her income tax return for tax year 1990 and $330.53 on her income tax return for tax year 1991 as either income or tax-exempt interest. “D.H. Craig” was Mrs. Craig, petitioner’s other daughter. “Mark Craig” was petitioner’s grandson. Mrs. Craig was his mother. Mark Craig did not report any interest from amounts received in redemption of tax certificates on income tax returns during those years. In a letter response to an inquiry by respondent’s counsel, Mrs. Craig stated that petitioner was acting as her agent in holding the amounts of $4,713.06 for 1991 and $974.56 for 1992 of her income. However, Mrs. Craig did not disclose those amounts on her income tax returns for either year as either income or tax-exempt interest, nor does the record show that petitioner held such amounts in trust or that he paid taxes on those amounts as trustee. Mrs. Craig had two other children who were listed as “Eric B. Craig” and “Nicole E. Craig” as alternate payees of interest received in redemption of tax certificates. NeitherPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011