- 5 -
and does not state that petitioners' 1995 income tax return has
been accepted as filed, nor does it address any of the specific
issues encompassed in the notice of deficiency. Accordingly,
respondent is not estopped from determining a deficiency in
petitioners' 1995 income tax.
II. Social Security Benefits
FINDINGS OF FACT
Petitioners reported receiving Social Security benefits of
$8,993 on their 1995 income tax return. Petitioners did not,
however, compute the taxable portion of their Social Security
benefits to be included in their gross income. Respondent
treated their failure to enter the taxable portion as a
computational adjustment and determined that the taxable portion
of the benefits was $7,643.
OPINION
Section 86 governs the taxability of Social Security
benefits. Applying that section, respondent determined that the
taxable portion of the benefits was $7,643. Petitioners do not
dispute the accuracy of respondent's calculation. Rather,
petitioners argue that the taxation of Social Security benefits
is an ex post facto law in violation of Article I of the
Constitution. Their position has no merit. The prohibition
against ex post facto laws applies only to penal legislation that
imposes or increases criminal punishment for conduct predating
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011