- 2 -
effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioners’ Federal
income tax of $2,968 for the taxable year 1997.
The issues for decision are: (1) Whether certain Social
Security disability benefits are includable in petitioners’ gross
income; and (2) whether petitioners are entitled to a deduction
for attorney’s fees incurred in obtaining the Social Security
benefits.1
Some of the facts have been stipulated and are so found.
The stipulations of fact and the attached exhibits are
incorporated herein by this reference. Petitioners resided in
Daly City, California, on the date the petition was filed in this
case.
During 1997, petitioner wife (Ms. Dela Cruz) received a
lump-sum payment of $11,316 for Social Security disability
benefits attributable to 1995 and 1996. Ms. Dela Cruz personally
received $8,487 of this amount, and the remaining $2,829 was
given to her lawyer. In addition, Ms. Dela Cruz’s daughter,
1Respondent has made two concessions. First, respondent has
accepted an amended return filed by petitioners but not reflected
in the notice of deficiency. The amended return reflects taxable
income of $42,503, while the notice’s adjustments were made to
taxable income of $43,289. Respondent concedes the difference.
Second, respondent concedes a mathematical error in the notice:
The “total increase” in income in the notice should read $9,850
rather than $9,856.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011