- 5 - return). The joint return was prepared by the same paid income tax return preparer who prepared the separate return. Arrangements for the filing of the joint return were made by the attorney representing petitioner in connection with her divorce from Mr. Weight. The income and deductions reported or claimed on the separate return are reported or claimed on the joint return. In addition to other items, pension income of $66,700 is reported on the joint return. Most of the pension income is attributable to Mr. Weight. Respondent subtracted the refund claimed on the separate return from the amount of withholding and prepayment credits claimed on the joint return.3 The unpaid income tax liability arising from the joint return is $15,536. Interest of $3,568, a $3,496 “late filing penalty”, and a $1,584 “failure to pay tax penalty” were assessed after the return was filed. Over the years, Mr. Weight and petitioner made payments toward the income tax liability established by the joint return. Without taking into account accrued but unassessed interest, as of April 17, 2002, petitioner’s joint and several outstanding 1996 Federal income tax liability was $1,848. 3 Because a substantial portion of the refund claimed on the separate return results from the earned income credit, that portion of the refund is, in effect, recovered from withholding credits attributable to Mr. Weight.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011