Roger G. and Lilianne J. G. Maki - Page 3




                                        - 2 -                                         

               Respondent determined a deficiency in petitioners’ 1997                
          Federal income tax in the amount of $2,487.  After concessions,1            
          the sole issue for decision is whether petitioners are entitled             
          to an overpayment of their 1997 tax liability.                              
               Some of the facts were stipulated and are so found.  The               
          stipulation of facts and exhibits submitted at trial are                    
          incorporated herein.  Petitioners resided in Des Moines,                    
          Washington, at the time their petition was filed.  References to            
          petitioner in the singular are to Roger G. Maki.                            
               Petitioner received Form SSA-1099 reporting $7,485.60 in               
          Social Security benefits in 1997.  Petitioners reported $6,362,             
          or 85 percent of the Social Security benefits, on their 1997                
          Federal income tax return.  Petitioners timely filed their                  
          Federal income tax return for 1997.                                         
               In the notice of deficiency, respondent determined that                
          petitioners failed to report $6,362 taxable Social Security                 
          benefits, $2,494 capital gain dividends, and $366 taxable                   
          dividends.  At trial, respondent accepted petitioners’ 1997                 
          Federal income tax return as filed.2  Nevertheless, petitioners             
          now contend that the Social Security disability income is non-              
          taxable because “the bill has never passed that says that Social            
          Security” is taxable.  On that basis, petitioners believe they              

          1    Petitioners concede unreported capital gain of $1,378.                 
          2    Upon further review, respondent determined that all items on           
          the notice of deficiency, with the exception of $1,378 of                   
          unreported capital gains, were reported on petitioners’ return,             
          although on the wrong lines of the return.                                  





Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011