- 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