- 7 - 1994 1995 Wages Embezzlement Wages Embezzlement Michael $27,949 -- $28,234 -- Christine 35,618 $44,152 48,178 $59,128 Total $63,567 $44,152 $76,412 $59,128 On July 7, 1998, Christine was released from prison and lived for either a month or a month and a half with Michael in the family residence. Thereafter, but for a week during the Christmas season of 1998, Christine did not live in the family residence, and through the time of trial on February 29, 2000, Christine lived in Portland, Oregon, with another person whom she met and with whom she had a relationship while in prison. Christine prepared petitioners' 1994 and 1995 joint Federal income tax returns, and Michael and Christine both signed and timely filed the returns. On those returns, Michael’s and Christine’s wages were accurately reported, but Christine’s embezzlement income was not reported. On audit, respondent determined that Christine’s embezzlement income represented additional unreported taxable income and that petitioners were jointly liable with respect to the tax deficiencies relating thereto. OPINION Generally, taxpayers filing joint Federal income tax returns are jointly and severally liable for all taxes due. See sec. 6013(d)(3).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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