- 4 -
On the basis of respondent’s adjustments to petitioner’s
1999 return, respondent concluded that petitioner’s tax liability
was $2,633.58, which was offset by the earned income credit of
$2,791, resulting in an overpayment of $157.42. Respondent
applied the overpayment to taxes petitioner owed for 1995.
2. Corrections to Petitioner’s 2000 Return
Petitioner attached to his 2000 return Schedule D, Capital
Gains and Losses, on which he reported short-term capital losses
of $4,499.51. He did not claim a short-term capital loss on his
Form 1040, U.S. Individual Income Tax Return. Respondent allowed
a short-term capital loss of $3,000. Petitioner claimed a $6,350
standard deduction for head of household on his 2000 return; the
correct amount for 2000 was $6,450. Respondent corrected that
error. Respondent also allowed petitioner an earned income
credit of $2,596 for Martin and Marlon for 2000.
On the basis of respondent’s adjustments to petitioner’s
2000 return, respondent concluded that petitioner’s tax liability
was $2,861, which was offset by the allowed earned income credit
of $2,596, resulting in a net balance due of $265. Petitioner
paid the $265, plus interest, on June 22, 2001.
C. Notices of Deficiency
Respondent sent notices of deficiency to petitioner for 1999
and 2000. Respondent disallowed petitioner’s claimed Schedule C
business expenses of $37,792 (including $2,023 for bad debts,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011