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(RIC), Amnesty International and as the shareholder, Darlene
Esposito. According to the testimony by petitioner, "with the
refund that I get from my 1120, I reimburse myself from the
Social Security benefits that I have used".
Attached to each of her Forms 1040 for the years at issue
are Schedules C for Amnesty International. Amnesty is listed
variously as being in the "communication service" business or the
"community service" business. Also attached to each individual
income tax return are two Forms 2439 ostensibly reporting
undistributed long-term capital gains and tax paid by the RIC,
Amnesty International, to "New Jersey Department of Labor"
(Labor), as "shareholder", and the RIC, "Juman and Juman, A
Professional Corporation" (Juman), to Darlene Esposito, as
"shareholder". Petitioner was not a shareholder of Juman, but
had been employed by the firm for a short period of time. For
each tax year, petitioner added the credit amounts shown on the
Amnesty and Juman Forms 2439 and deducted the total from her
income tax liability as "other payments" on Form 2439.
Petitioner deducted $6,000 in 1996, $6,114 in 1997, and $5,260 in
1998 from her current income tax liabilities. According to the
testimony of petitioner, the amounts represent "my 401 early
distributions because of my disability".
While she deducted the credits for tax paid, petitioner did
not report as income on her Forms 1040 any of the purported
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Last modified: May 25, 2011