- 13 - plead her allegations of fact with sufficient specificity that the Court can conduct a meaningful hearing to determine whether respondent can proceed with collection of her liability. Poindexter v. Commissioner, supra at 285. Petitioner’s statements indicate that she disagrees with the income tax liability as shown on the joint return. However, other than claiming that the joint return contained false or fraudulent information, petitioner fails to specifically address or identify any items of income, deduction, or credit or any calculations that are incorrect. In fact, respondent has not challenged the $7,376 in Schedule C expenses claimed on the filed 1996 tax return.11 In short, as to computational matters, petitioner has failed to aver facts or to establish facts at trial with credible evidence sufficient to show any error in respondent’s assessment. Petitioner’s only explicit argument contesting her underlying tax liability is her contention that 11 Petitioner stated that she had gross income of $11,000 and incurred $8,000 in expenses for papers and supplies in connection with her newspaper delivery business. However, at trial, she orally listed expenses of: $7,405 for papers, $140 for an expense not mentioned, and $300 for her bond. These amounts total $7,845, none of which was substantiated by petitioner. Petitioner did not submit any evidence regarding any of her deductions, yet respondent never disallowed any of the $7,376 in expenses claimed on petitioner’s Form 1040, Schedule C. It appears that petitioner attempted to file a Form 1040 because she believed she was entitled to a refund of her $900 in tax credits. She apparently thought that she only had income of approximately $3,000, was, therefore, not liable for any tax, and had no obligation to file a return. This was an erroneous belief since an individual’s obligation to file a tax return depends upon on gross income, not net income. See sec. 6012(a)(1)(A); see also supra sec. II.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011