- 3 - Background A. Petitioners’ Form 1040 for 1998 On or about August 19, 1999, petitioners submitted to respondent a joint Form 1040, U.S. Individual Income Tax Return, for the taxable year 1998. On the Form 1040, petitioners listed their filing status as “Married filing joint return”. Petitioners entered zeros on applicable lines of the income portion of their Form 1040, specifically including line 7 for wages, line 22 for total income, and lines 33 and 34 for adjusted gross income. Petitioners also entered a zero on line 56 for total tax. Petitioners claimed an overpayment of $2,333 related to Federal income tax withholding. Petitioners attached to their Form 1040 four Forms W-2, Wage and Tax Statement, issued to petitioners by various employers. B. Respondent’s Deficiency Notice and Petitioners’ Response On May 26, 2000, respondent issued to petitioners a joint notice of deficiency. In the notice, respondent determined a deficiency of $4,736 in petitioners’ Federal income tax for 1998 and an accuracy-related penalty under section 6662(a) for negligence or disregard of rules or regulations of $480.53. The deficiency was based principally on respondent’s determination that petitioners failed to report the wage income as reported to respondent by third-party payors on Forms W-2.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011