Dennis J. Lawless - Page 5




                                        - 4 -                                         
               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.                             




Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011