Loretta Jean Randolph - Page 5




                                        - 5 -                                         
          with their corporate income tax returns for that year.  The                 
          record does not reveal whether at any time petitioner had assets            
          sufficient to repay the $50,000.                                            
               During 1995, petitioner completed, executed, and submitted             
          to the Internal Revenue Service (the Service) a Form 1040, U.S.             
          Individual Income Tax Return, for the 1994 taxable year (1994               
          Form 1040).  Before submitting the Form 1040, petitioner struck             
          the words “penalties” and “perjury” from the verification portion           
          of that form (jurat) which appeared immediately above her                   
          signature.  Before that action, the jurat read:  “Under penalties           
          of perjury, I declare that I have examined this return and                  
          accompanying schedules and statements, and to the best of my                
          knowledge and belief, they are true, correct, and complete.”  The           
          1994 Form 1040 reflected no tax payments made for that year by              
          petitioner, either through withholding or estimated payments.               
               Respondent determined that petitioner’s 1994 Form 1040 did             
          not constitute a valid Federal income tax return because she did            
          not sign it under penalty of perjury.  In the notice of                     
          deficiency, respondent included $50,000 in petitioner’s income on           
          the ground that the corporation had relieved her indebtedness to            
          it by that amount in connection with the reorganization.  In                
          addition, respondent determined that petitioner was liable for an           
          addition to tax under section 6651(a)(1) because she had not                
          filed a valid 1994 Federal income return by its due date and for            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011