Kathy A. King - Page 3




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                                      Background                                        
               Mr. Freeman was previously married to petitioner, and he and             
          petitioner filed a joint return for 1993, which is the year in                
          issue.  Although Mr. Freeman is not a petitioner in this case, he             
          objects to petitioner’s claim for relief from joint liability.                
               At the time the petition was filed, petitioner was a                     
          resident of Hartsville, South Carolina.  At the time Mr. Freeman              
          filed his motion, he was also a resident of Hartsville, South                 
          Carolina.                                                                     
               During 1993, petitioner and Mr. Freeman were married to each             
          other.  They separated sometime during 1993 and, in May 1995,                 
          they were divorced.  Their joint Federal income tax return for                
          1993 included a Schedule C, Profit or Loss From Business, for a               
          farming activity.  The reported gross income from this activity               
          was $802, the claimed expenses totaled $28,199, and the reported              
          net loss was $27,397.  Respondent disallowed the $27,397 loss on              
          the ground that the farming activity was not engaged in for                   
          profit.  There were other adjustments to the return that flowed               
          from the disallowed loss.  On December 23, 1996, respondent                   
          issued separate notices of deficiency to petitioner and Mr.                   
          Freeman.  The deficiency shown in each notice was $7,781.                     
          Petitioner filed a timely petition, but Mr. Freeman did not.                  


               1(...continued)                                                          
          Rules of Practice and Procedure.                                              





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