- 2 -
a Claim Upon Which Relief Can be Granted. As explained in detail
below, we shall grant respondent’s motion.1
Background
Petitioner has been incarcerated in the Nebraska State
prison system since 1986. During the taxable year 1999,
petitioner was employed by TEK Industries (TEK) as a diemaker and
was paid a minimum wage of $5.50 per hour. The State of Nebraska
charged petitioner a maintenance fee of $1.50 for each hour that
he worked. In addition, 5 percent of petitioner’s pay was
remitted to the Nebraska Victim’s Compensation Fund.
Petitioner filed a Federal income tax return for 1999 on
which he reported wage income of $2,699 and zero tax due.
Petitioner reported that he was eligible for an earned income
credit of $335, and he claimed an overpayment in that amount.
A refund check in the amount of $335 was issued to
petitioner. However, State prison officials, in cooperation with
the Internal Revenue Service (IRS), intercepted the check and
returned it to the IRS. Thereafter, a credit was posted to
petitioner’s account in the amount of $335, and a freeze was
placed on petitioner’s account to prevent any further activity.
On October 20, 2000, respondent issued a notice of
deficiency to petitioner determining a deficiency in his Federal
1 Unless otherwise indicated, section references are to
sections of the Internal Revenue Code, as amended. Rule
references are to the Tax Court Rules of Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011