- 5 - On the 1994 joint Federal income tax return that he and his late wife filed, petitioner reported taxable interest income of $6,085 and tax-exempt interest income of $28,635.2 Respondent determined that the interest income petitioner received from the redemption of tax certificates was not tax exempt. Respondent further determined that petitioner failed to report interest income of $7,482. This amount represents interest reported on Forms 1099, which listed copayees’ Social Security numbers. Respondent also determined that petitioner failed to report interest income from First Union National Bank of $99 and interest income from Bankers Trust of $6. Accordingly, respondent determined that petitioner failed to report taxable interest income of $36,221. In the present case, petitioner concedes $28,739 of the $36,221 interest income adjustment contained in the notice of deficiency. The interest income from First Union National Bank and Bankers Trust is not disputed by petitioner. Petitioner also does not argue that the interest income reported on the Forms 1099 issued by the tax collector is tax exempt. Instead, petitioner contends that the interest income represented by Forms 1099 listing copayees’ Social Security numbers should not be 2 In the deficiency notice respondent determined that the amount should have been $28,634, apparently because of an arithmetic error.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011