- 5 - Petitioner and Mr. Tillotson timely filed with the Internal Revenue Service a joint Form 1040 for taxable year 1998. On their jointly filed Form 1040, petitioner and Mr. Tillotson reported: (1) Wage income of $18,052, (2) business income of $6,059, (3)taxable income of $11,183, (5) self-employment tax of $856, (6) Federal income tax withheld of $1,741, and (7) an amount owed of $791. Petitioner and Mr. Tillotson attached a Schedule C to their jointly filed 1998 Federal income tax return. On the Schedule C, Mr. Tillotson was identified as the proprietor of the business, “Contract Installations”. Petitioner and Mr. Tillotson did not satisfy the underpayment when they filed their joint 1998 Federal income tax return. Petitioner and Mr. Tillotson were divorced on November 27, 2000, by a divorce decree entered by the District Court of Hunt County, Texas. The divorce decree states, in pertinent part: IT IS ORDERED AND DECREED that DAVID ALLEN TILLOTSON and WENDY LANETTE TILLOTSON shall be equally responsible for all federal income tax liabilities of the parties from the date of marriage through December 31, 1998, and each party shall timely pay 50 percent of any deficiencies, assessments, penalties, or interest due thereon and shall indemnify and hold the other party and his or her property harmless from 50 percent of such liabilities unless such additional tax, penalty, and/or interest resulted from a party’s omission of taxable income or claim of erroneous deductions. In such case, the portion of the tax, penalty, and/or interest relating to the omitted income of claims of erroneous deductions shall be paid by the party who earned the omitted income or proffered the claim for an erroneous deduction. The parties agree that nothing contained herein shall be construed as or is intended as a waiver of any rights that a party has under the “Innocent Spouse” provisions of the Internal Revenue Code.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011