- 4 -
On October 29, 2003, almost 17 months after the notice was
issued, petitioner submitted to counsel for respondent a
completed Form 1040, U.S. Individual Income Tax Return, for 1995,
dated October 29, 2003, on behalf of herself and Mr. Quarterman
(the 1995 Form 1040). Petitioner prepared the 1995 Form 1040 by
copying a draft or copy of a return that Mr. Quarterman had
previously prepared. The income items listed in the 1995 Form
1040 consist of $56,000 representing an estimate of the combined
pension income received by her and Mr. Quarterman during 1995
(approximately $28,000 for each), $900 of “taxable interest
income”, and a $788 refund of 1994 Federal income taxes. The
1995 Form 1040 also reports an $18,087 loss attributable to
rental real estate, $26,550 of itemized deductions, $5,000 for
personal exemptions, taxable income of $5,9632 and tax due of
$870. The form also claims tax payments of $2,600 resulting in a
refund due of $1,630.
The $3,390 tax deficiency determined by respondent for 1995
is the result of respondent’s inclusion in petitioner’s income
for that year of (1) $28,725 listed on a Form 1099R,
Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc., issued by the
2 There is an arithmetical error in the computation of
taxable income. Based upon the items of income and loss, the
itemized deductions, and the personal exemption amount set forth
in the 1995 Form 1040, taxable income should be $8,051, not
$5,963.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011