Gerald Dennis Strong - Page 1

                                 T.C. Memo. 2001-103                                  

                               UNITED STATES TAX COURT                                

                         GERALD DENNIS STRONG, Petitioner v.                          
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 582-99.                     Filed April 30, 2001.           

                    P and his spouse were separated but legally married               
               when P prepared and filed a document as their joint 1994               
               income tax return, which P signed on behalf of his spouse.             
               Later, P filed a petition for bankruptcy.  R filed a proof             
               of claim in P’s bankruptcy case alleging, inter alia, a                
               deficiency for 1994 arising largely from P’s failure to                
               include income P received under a settlement agreement                 
               between P and P’s former employer.  P objected and contended           
               that the amounts received under the settlement agreement               
               were excludable from gross income under sec. 104(a)(2),                
               I.R.C. 1986.  The bankruptcy court overruled P’s objection             
               and allowed R’s claim for P’s 1994 tax liability.  In the              
               instant case, R raises the affirmative defense of res                  
               judicata, but not as to whether the 1994 tax return was a              
               joint tax return or was P’s separate tax return.                       
                    1.  Held:  R sustained as to res judicata.                        
                    2.  Held, further, the income tax return filed for 1994           
               was intended by P and his spouse to be their joint income              

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