Agnes T. Bosco - Page 5

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          petitioner for anticipated State and Federal income taxes totaled           
          $21,510.98.                                                                 
               Warnaco, the surviving corporation, issued to petitioner,              
          for the year 2001, a Form W-2, Wage and Tax Statement, in the               
          amount of $46,519.83.  The amount was itemized on a separate                
          schedule and included the wages paid to petitioner, including               
          overtime, severance pay, and a bonus.  Additionally, the                    
          $46,519.83 included $17,751.11 for moving expenses.  On the                 
          itemized schedule, Warnaco explained that the $17,751.11                    
          consisted of $14,046.64 paid to third-party providers, less the             
          $3,759.87 paid for the transportation of petitioner’s personal              
          belongings to Irwindale, California, and the $7,464.34 paid to              
          petitioner as a “Total Tax Liability Gross-Up”.  Thus, the                  
          $3,759.87 paid by Authentic Fitness was not included as income on           
          the schedule provided to petitioner, nor was that amount included           
          as income on her Form W-2.                                                  
               A taxpayer may claim a deduction for moving expenses paid or           
          incurred in connection with beginning work at a new principal               
          place of work.  Sec. 217(a).  Moving expenses include reasonable            
          expenses incurred in moving household goods and traveling                   
          (including lodging) from the former residence to the new                    
          residence.  The cost of meals incurred while traveling may not be           
          deducted as moving expenses.  Sec. 217(b).  Petitioner bears the            








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