- 4 -
Adjustment to income $10,300
Taxable income per return 167,063
Corrected taxable income 77,363
Tax--from tax tables 16,595
Additional tax on IRA (10 percent) 1,030
Total corrected tax liability 17,625
Less: Tax shown on return 13,711
Deficiency 3,914
1 This amount was computed as follows:
Wages per return $78,613
Total income 78,613
Less:
Standard deduction $6,550
Exemptions 5,000 11,550
Taxable income 67,063
On the basis of the corrected tax liability of $17,625, less
the income withholding of $8,942, respondent determined an
addition to tax under section 6651(a)(1) of $2,171. Likewise,
starting with the $17,625 amount, respondent also determined an
addition to tax under section 6654(a) of $364.
Petitioners abandoned their tax protester arguments and
filed a Second Amended Petition on March 30, 1998. In their
amended petition, they claimed Schedule C expenses and Schedule E
losses and a Schedule D capital loss.
Simultaneously with the filing of their amended petition,
petitioners provided respondent with a revised 1995 Form 1040,
signed on March 30, 1998. On the Form 1040, they included in
gross income their previously reported wages. They also reported
distributions of $3,334 and pensions and annuities of $6,967,
totaling $10,301. Therefore, we deem that petitioners have
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011