Clyde E. Hack and Carole J. Hack - Page 2




                                         -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