- 5 -
On March 26, 2000, petitioner filed a Form 1040 for the 1998
taxable year (1998 return). He filed as a “head of household”
and claimed an IRA deduction of $2,000 and a self-employed health
insurance deduction of $4,987.
On May 31, 2000, petitioner contracted Lyme disease, which
resulted in his receiving a doctor’s care for retinal
degeneration.
Respondent issued petitioner a notice of deficiency dated
August 1, 2001. For the 1997 taxable year, respondent adjusted
petitioner’s filing status from “married filing joint return” to
“married filing separate return” and determined an addition to
tax of $1,468.25 under section 6651(a)(1) and a penalty of
$2,212.20 under section 6662(a).4 For the 1998 taxable year,
respondent determined an addition to tax of $5,341.75 under
4 Respondent also made other adjustments to the 1997
return. Some of them are computational or result from
respondent’s proposed adjustment in petitioner’s filing status.
They include changes to the amount of (1) alternative minimum
tax, (2) exemptions, (3) itemized deductions, and (4) wage
income. The remaining adjustments, as indicated, have been
resolved by mutual concession. They involve the following: (1)
Inclusion of unreported capital gain of $5,981; (2) disallowance
of a self-employed health insurance deduction of $4,866; and (3)
disallowance of a deduction for Keogh and self-employed SEP and
SIMPLE plans of $30,000.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011