James Wilson Richmond, Jr. - Page 5

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          plus the amount applied from the 1999 return.3  On the 2000                 
          return, he claimed an overpayment of $3,268.22 and directed that            
          it be applied to his 2001 estimated tax.                                    
               Although petitioner reported payments totaling $6,000 for              
          1999, in fact he made payments totaling $6,600 and had an                   
          overpayment of $3,377 ($3,223 - $6,600) in 1999.  Respondent did            
          not apply that overpayment to petitioner’s 2000 estimated tax as            
          petitioner directed on the 1999 return.  Instead, respondent                
          credited, as of April 15, 2000, the $3,377 overpayment from 1999            
          to petitioner’s unpaid tax for 1994.4                                       
               With respect to 2000, respondent assessed a total tax of               
          $11,091.22, rather than the $7,437.65 petitioner reported on the            
          2000 return.  The tax assessed was calculated on $40,350 of                 
          adjusted gross income, $33,150 of taxable income, and $5,214 of             
          self-employment tax.  Respondent attributed the increase in the             
          tax assessed over that reported on petitioner’s return to                   
          mathematical errors on the 2000 return.  As a result of                     
          respondent’s adjustments, respondent determined that petitioner             
          underreported his income tax by $3,653.57 ($11,091.22 -                     
          $7,437.65).  Because respondent credited petitioner’s overpayment           

               3We note the tax payments so claimed correctly total                   
          $10,715.87 ($7,938.87 + $2,777).                                            
               4The transcript of petitioner’s 1999 account shows that                
          petitioner’s 1999 overpayment was credited to his 1994 liability            
          during the 40th week of 2001.  The Court takes judicial notice              
          that the 40th week of 2001 was the first week in October 2001.              





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