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behalf as $92,636. Petitioners entered $92,636 on Form 1040,
line 64 (“Other payments”) and claimed a refund on a total
overpayment of $92,861.
Petitioners each signed the tax return. The tax return was
not signed by a tax return preparer. Respondent processed the
tax return and issued to petitioners a refund check in the amount
of $93,071.
On March 24, 2004, respondent issued a notice of deficiency
to petitioners for the taxable year 2000. In the notice,
respondent determined a deficiency in petitioners’ income tax in
the amount of $92,636, asserting:
The claim you filed on Form 2439 includes a credit that
you assert is owed to you as a reparation or tax rebate
based on the impact of slavery. Since there is no law
allowing this type of payment, we cannot honor this
type of credit. Accordingly, your income tax liability
has been increased based on the credit recapture. Due
to the allowance of the credit, you will need to return
the portion of your refund based on the disallowed
amount.
Petitioners filed a timely petition challenging the notice
of deficiency.3 In the petition, petitioners contend that
respondent should attempt to collect the amount in dispute from
their tax return preparer “if he was behaving fraudulently” in
this matter. Petitioners also allege that the period of
3 At the time the petition was filed, petitioners resided
in Columbia, Missouri.
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