- 9 - F.2d 1256, 1262 (2d Cir. 1993), affg. T.C. Memo. 1992-228). Normal support is not considered a significant benefit. Hayman v. Commissioner, supra at 1262 (citing Flynn v. Commissioner, 93 T.C. 355, 367 (1989)). Petitioner received significant benefits as a result of filing a joint return on which the Social Security benefits went unreported. The joint return filed by the parties reflected taxable income derived almost exclusively from petitioner. Filing a joint return with Ms. Morrison allowed petitioner to significantly reduce his taxable income using exemptions and itemized deductions attributable to Ms. Morrison, her mother, and her daughter. Had he not filed the joint return with Ms. Morrison, petitioner’s tax liability would have been substantially higher. Further, had Ms. Morrison filed a separate return properly including her benefits, she would have had little, if any tax liability. Her tax liability arose when her benefit income was added to petitioner’s income on the joint return. The parties’ failure to report the correct tax liability was not the result of concealment, overreaching, or any other wrongdoing on the part of Ms. Morrison. Ms. Morrison was forthright and never made any attempt to conceal from petitioner the amount of benefits she received. She presented her benefit statement to the return preparer while in the presence ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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