- 6 -
accounting classes. Janet graduated from high school and never
attended college.
TECO issued Forms 1099-MISC, Miscellaneous Income, to Vernon
for 1987, 1988, and 1989. The Forms 1099 listed nonemployee
compensation in the amounts of $5,250, $18,300, and $68,000 for
1987, 1988, and 1989, respectively. Vernon and Janet believed
that the amounts listed on these Forms 1099 covered the amount of
personal expenses paid for, and withdrawals made by, Vernon out
of TECO’s funds. Vernon and Janet mailed these Forms 1099 to the
IRS.
Janet handled all of Vernon’s personal finances. Janet
prepared the joint individual Federal income tax returns filed by
Janet and Vernon for the years in issue. Vernon did not sign the
return for 1987. He was out of town at the time Janet prepared
it, and he did not review the return prior to its being filed.
On TECO’s Forms 1120, U.S. Corporation Income Tax Return,
for TY 1987, TY 1988, and TY 1989, TECO reported overpayments of
taxes in the amounts of $14,187.50, $66,674.56, and $81,561.09,
respectively. Janet and Vernon’s Form 1040, U.S. Individual
Income Tax Return, for 1988 also reported an overpayment of
taxes. For each of these taxable years, instead of taking a
refund, petitioners requested that the overpayment be applied to
the next year’s estimated taxes.
In 1990, Vernon and Janet separated. They later divorced.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011