- 2 -
Respondent determined a deficiency in petitioners’ Federal
income tax of $1,991 for the taxable year 2000. The issue
remaining for decision is whether Social Security disability
benefits petitioners received are includable in their gross
income.1 Petitioners resided in Chula Vista, California, on the
date the petition was filed in this case.
Petitioners filed a joint Federal income tax return for
taxable year 2000. They did not report any income from Social
Security disability benefits. Respondent determined that
petitioners received $15,053 in disability benefits during 2000,
and that $12,795 of this amount was includable in petitioners’
gross income.
Petitioners do not dispute receiving the amount of benefits
respondent determined. Rather, petitioners argue that disability
benefits, as such, should not be included in gross income.
Petitioners base their position upon advice they received from an
accountant and IRS employees, who told petitioners that
disability payments are not taxable. However, despite the advice
1The Court, in an order dated Dec. 1, 2003, held that a
notice of deficiency issued to petitioners for taxable year 1999
was invalid because it did not reflect petitioners’ last known
address. Because the jurisdiction of this Court requires a valid
notice of deficiency, petitioners’ case was dismissed for lack of
jurisdiction insofar as it related to 1999, and this Court may
not address at this time issues raised by petitioners with
respect to that year. Petitioners do not dispute the only other
adjustment in the notice of deficiency for taxable year 2000, the
inclusion in income of capital gain dividends of $15.
Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011