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On May 25, 1998, respondent assessed petitioner’s 1997
income tax liability as $7,219 and credited petitioner with
$5,807 of taxes withheld and paid on his behalf. On July 6,
1998, without explanation, respondent abated the entire $7,219 of
previously asssessed tax liability and issued petitioner a refund
of $5,884, reflecting the $5,807 of withheld taxes plus $77 of
accrued interest.
In the notice of deficiency, issued November 23, 1999,
respondent determined that petitioner had taxable income which
included, among other things, $22,166 of taxable wages shown on
petitioner’s 1997 tax return.3 The notice of deficiency did not
include in petitioner’s taxable income any part of the $11,750
Denso Plan distribution. Respondent determined that petitioner’s
tax liability on the taxable income so determined was $4,587 and
that he also owed $1,175 as a 10-percent additional tax on an
early distribution from a qualified retirement plan, as well as a
$1,150 accuracy-related penalty.
3 As previously stated, the actual amount of taxable wages
shown on petitioner’s 1997 tax return was $22,168. The record
contains no explanation of the apparent discrepancy. The notice
of deficiency also adjusted petitioner’s taxable income to
reflect various items which the parties have now conceded, as
previously indicated. The notice of deficiency did not include
in petitioner’s taxable income (or make any reference to) the
$372 of unemployment compensation shown as taxable income on
petitioner’s 1997 return. As any error in this regard operates
to petitioner’s benefit, and as the parties have not alluded to
this item, we give it no further consideration.
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Last modified: May 25, 2011