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The issue for decision is whether petitioner had unreported
interest income of $10,255 from the redemption of U.S. savings
bonds in taxable year 2000.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulated facts and the related exhibits are incorporated
herein by this reference. At the time of filing the petition,
petitioner resided in Baltimore, Maryland.
During the year in issue, petitioner redeemed a number of
U.S. savings bonds, which had accrued interest of $10,255.
Petitioner and her deceased husband had purchased the bonds 20 to
25 years prior to the year in issue. The record is devoid of any
evidence regarding (1) the type of U.S. savings bond, (2) whether
the bonds were issued at a discount, and (3) whether the bonds
were redeemed on their respective dates of maturity.
Petitioner timely filed a Form 1040, U.S. Individual Income
Tax Return, for the 2000 taxable year (2000 tax return). The
return was prepared by petitioner’s son. Petitioner did not
report having received any Social Security benefits during the
2000 taxable year. Nor did she report any of the $10,255 in
interest income resulting from bond redemption.
Respondent issued petitioner a notice of deficiency dated
December 23, 2002, determining a deficiency in Federal income tax
of $2,183 for the 2000 taxable year. The adjustments in the
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