- 7 -
On April 15, 2000, petitioner and Mr. Ohrman filed a joint
1999 Federal income tax return (joint 1999 return), Form 1040,
U.S. Individual Income Tax Return, and attachments. Petitioner
prepared the joint 1999 return on her home computer using Turbo
Tax, a tax preparation program. Although two Forms 1099-R,
Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc., for 1999 were
sent to Mr. Ohrman at the Birdshill residence--one indicating a
gross distribution and taxable amount of $71,000 from the Dean
Witter account and the other indicating a gross distribution and
taxable amount of $8,000 from the Dean Witter account–-the
$79,000 in distributions withdrawn by Mr. Ohrman from his Dean
Witter account was not reported on the joint 1999 return filed by
petitioner and Mr. Ohrman.
The $79,000 withdrawn by Mr. Ohrman from the Dean Witter
account was taxable income, the omission of which from the joint
1999 return resulted in an understatement of tax attributable to
an erroneous item of Mr. Ohrman. At the time petitioner signed
the joint 1999 return, she did not have actual knowledge of the
early distributions from the Dean Witter account.
On May 29, 2001, respondent issued a letter of proposed
changes to petitioner’s and Mr. Ohrman’s reported tax liability
for 1999. This letter proposed that petitioner and Mr. Ohrman
owed an additional $42,927 (consisting of $32,217 in deficiency,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011