- 4 - conference, petitioner and intervenor entered into an agreement on July 9, 2001. This agreement provided that Defendant [intervenor] shall assume full financial responsibility and shall pay the 1998 income tax liability, penalties and interest which currently total approximately $10,500.00. Defendant shall indemnify Plaintiff [petitioner] and shall hold him harmless for the payment of said tax liability. This provision was incorporated into an Equitable Distribution Consent Order and Judgment filed by the State court on May 17, 2002. Petitioner and intervenor filed a joint Federal income tax return for taxable year 1998. The return was prepared by a return preparer, Jay Martin, before it was signed by petitioner and intervenor. Mr. Martin was an acquaintance of intervenor and primarily dealt with her rather than petitioner in preparing the return. Due to an error by Mr. Martin, the $14,399 earned by intervenor in 1998 was not reported on the return. For an unknown reason, the $805 in income which intervenor earned in 1998 and which was reported on a Form 1099-MISC also was not reported on the return. Neither petitioner nor intervenor thoroughly reviewed the return, and neither corrected the omitted items of income, prior to signing the return. Only what appears to be a portion of the statutory notice of deficiency is in the record. The notice recites the following items of income as nonemployee compensation paid to petitioner and intervenor:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011