Mona L. Purcell - Page 5




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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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