Alva Cotter Shell IV, Petitioner, and Jamie L. Jones, Intervenor - Page 4

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               Intervenor worked part time at five different jobs and                 
          earned total income of $5,666 during 1996.  Intervenor’s earnings           
          were deposited into the joint checking account she maintained               
          with petitioner.  Petitioner knew of intervenor’s employment and            
          earnings.                                                                   
               During their marriage, both petitioner and intervenor                  
          participated together in their financial matters.  For example,             
          personal and household expenses were paid by both petitioner and            
          intervenor from their joint checking account.                               
               Petitioner’s and intervenor’s joint 1996 Federal income tax            
          return was prepared and electronically filed by a paid income tax           
          return preparer.  Prior to meeting with their return preparer,              
          petitioner and intervenor discussed not reporting all of                    
          intervenor’s income in order to qualify for a greater earned                
          income credit.  Therefore, petitioner and intervenor together met           
          with their return preparer.  The information petitioner and                 
          intervenor provided their return preparer included all of                   
          petitioner’s 1996 income and $594 of intervenor’s 1996 income.              
          Both petitioner and intervenor knew that $5,072 of intervenor’s             
          income was not reported on their 1996 return.  Petitioner and               
          intervenor received a refund of their 1996 taxes in the amount of           
          $2,267, more than half of which was attributable to the earned              
          income credit.                                                              








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