- 5 - The $18,774 at issue is composed of 22 separate checks. Petitioner examined these checks and identified three of the checks as bearing her signature. Mr. Fullen signed petitioner’s name to many of the checks that were cashed. Mr. Fullen admits he earned the compensation in issue and it is he who owes the corresponding income tax. He also admits that he has not filed a Federal income tax return for 1998. While under oath, Mr. Fullen gave respondent his Social Security number twice. While petitioner and Mr. Fullen reside together, they have never been married. Petitioner has never given anyone the impression that she was married to Mr. Fullen. Discussion Respondent contends that if the Court finds that the nonemployee compensation is not attributable to petitioner, respondent will be placed in a classic whipsaw position because respondent has no record of Mr. Fullen as a taxpayer. Respondent alleges in the alternative, that if petitioner did not earn the nonemployee compensation in issue, petitioner was Mr. Fullen’s common law wife and, as such is liable for income tax on one-half Mr. Fullen’s income. Respondent also contends that under such circumstances, petitioner is required to change her filing status from single to married filing separate.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011