- 9 -
By letter dated December 27, 2000, the Comptroller of
Maryland confirmed that petitioners’ 1996 Maryland State Tax
Return, as filed, resulted in an overpayment of $2,532.853 of
which $2,191.32 was refunded to petitioners and $361.53 was
offset to the Maryland State Central Collections Unit. There is
no evidence in the record explaining what the offset represents.
With certainty, we can state that this deduction reduced
petitioners’ 1996 Federal income tax liability, and, therefore,
the Maryland State tax refund received in 1997 is includable in
gross income.
Accordingly, we sustain respondent and hold that $2,552 is
includable in petitioners’ income for 1997.
We have considered all arguments made by the parties, and,
to the extent not discussed above, conclude they are irrelevant
or without merit.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
3 The letter from the Comptroller of Maryland appears to
have a typographical error, i.e., this number should be $2,552.85
instead of $2,532.85 ($2,191.32 + $361.53 = $2,552.85).
Page: Previous 1 2 3 4 5 6 7 8 9 10
Last modified: May 25, 2011