Dorothy Ann Magee - Page 13

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          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.                                                     



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