- 11 -
return of a deduction or credit in an amount that exceeds a
statutory limit. Sec. 6213(g)(2).
On his 2000 return, petitioner reported a total tax
liability of $7,437.65--$6,605 tax on taxable income of
$35,757.62 plus $832.65 (approximately 50 percent of the
$1,665.31 self-employment tax he computed). Respondent assessed
a total tax of $11,091.22, rather than the $7,437.65 petitioner
reported on the return. Respondent determined that the
deficiency was attributed to a mathematical error and did not
issue a notice of deficiency. The statutory notice of balance
due explaining the changes in the amount of tax assessed is not
in the record.
The transcript of petitioner’s 2000 taxes reflects that
respondent assessed petitioner’s taxes on the basis of $40,350 of
adjusted gross income, $33,150 of taxable income, and $5,214 of
self-employment tax. On the basis of those numbers, we conclude
that respondent assessed income tax of $5,877 ($11,091 - $5,214)
on $33,150 of taxable income, consistent with the tax table for
2000. 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).
There is no notice of deficiency to explain how respondent
computed petitioner’s 2000 tax liability. At the trial of this
case and on brief, respondent explained the correction of
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011