-2- approximately $15,042.55.1 Currently, the case is before the Court on respondent’s motion for summary judgment under Rule 121 and to impose a penalty under section 6673. Petitioners responded to respondent’s motion by way of a general objection. We shall grant respondent’s motion for summary judgment and shall impose a $2,000 penalty against petitioners. Unless otherwise noted, section references are to the applicable versions of the Internal Revenue Code. Rule references are to the Tax Court Rules of Practice and Procedure. Background On April 15, 1999, petitioners filed a joint 1998 Federal income tax return in which they reported no wages, other income, or tax liability. They entered zeros on every line of the return, but for the lines related to “Federal income tax withheld from Forms W-2 and 1099." Petitioners claimed on the return a refund of $1,969.80 for withheld taxes. They attached to the return a declaration stating in part that “this return is not being filed voluntarily,” that petitioners “had ‘zero’ income according to the Supreme Court’s definition of income”, and that petitioners “can only swear to having ‘zero’ income in 1998.” Petitioners included with their return two 1998 Forms W-2, Wage and Tax Statement, and one 1998 Form 1099-R, Distributions 1 We use the term “approximately” because this amount was computed before the present proceeding and has since increased on account of interest.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011