- 3 - overpayment in the amount of $4,543. In processing petitioner’s 1997 return, respondent discovered mathematical or clerical errors that served to understate petitioner’s reported tax liability, and therefore overstate petitioner’s overpayment claim, by $118. After correction of these errors, the overpayment claim was reduced to $4,425. By notice dated June 1, 1998, respondent advised petitioner that the overpayment claimed on his 1997 return (corrected as described above) had been applied to petitioner’s outstanding tax liability for 1987. On February 4, 2000, respondent sent petitioner a notice of deficiency determining a deficiency in his Federal income tax for 1997 in the amount of $1,950. The deficiency was based on respondent’s determination that petitioner had failed to report on his 1997 return: (1) Gambling income in the amount of $6,800, (2) interest income in the amount of $315, and (3) taxable Social Security benefits in the amount of $5,878. Shortly after respondent sent the notice of deficiency, petitioner submitted Form 1040X, Amended U.S. Individual Income Tax Return, for 1997. In the Form 1040X, petitioner admitted that he had failed to report the amounts determined by respondent in the notice of deficiency and that his total income tax liability for 1997 was $4,451, an amount consistent withPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011