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(1969). Section 1341 provides relief to a taxpayer who has
received income under the claim of right doctrine and applies
only if the amount of repayment exceeds $3,000 in the taxable
year. Sec. 1341(a)(3). Additionally, section 86(d)(2)(A) allows
a taxpayer to reduce the amount of Social Security benefits
includable in income, if, during the same year, the taxpayer was
required to make repayments on Social Security benefits
previously received.
While petitioner's situation is not an enviable one, this
Court is bound by the language of the Code. Because petitioner
received her Social Security benefits in 1999, she was obligated
to report them on her 1999 Federal income tax return. The Court
holds, therefore, that respondent's determination that petitioner
failed to report $13,561.75 as income on her 1999 tax return is
correct.
Respondent also determined that a section 6662 accuracy-
related penalty is due with respect to petitioner's tax return
for 1999.
Section 6662 imposes a penalty equal to 20 percent of the
portion of the underpayment attributable to negligence or
disregard of rules or regulations. See sec. 6662(a) and (b)(1).
Negligence is defined as any failure to make a reasonable attempt
to comply with the provisions of the Internal Revenue Code, and
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