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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.
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Last modified: May 25, 2011