- 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