Susanne Shaw - Page 5

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          On October 16, 2003, an Appeals officer sent petitioner’s counsel           
          a letter offering petitioner an Appeals conference.  Thereafter,            
          petitioner’s counsel and the Appeals officer corresponded and               
          held telephone conferences concerning the issues and evidence in            
          the case.  On August 6, 2004, petitioner’s counsel sent the                 
          Appeals officer a fax indicating he needed to gather more                   
          information and had to interview two potential witnesses before             
          discussing the possibility of settlement with the Appeals                   
          officer.                                                                    
               On August 9, 2004, this Court issued its notice setting this           
          case for trial at the trial session in Oklahoma City, Oklahoma,             
          beginning on January 10, 2005.  On September 7, 2004, the Appeals           
          officer, having received no further documentation from                      
          petitioner’s counsel, forwarded her Appeals Transmittal and Case            
          Memorandum to respondent’s associate area counsel, thereby                  
          releasing the case from the Appeals Office.  The Appeals officer            
          still questioned whether petitioner lived apart from her husband            
          for the requisite amount of time during the 2002 taxable year to            
          qualify for head of household filing status.3                               


               3 See secs. 2(b)(1), (c), 7703(b).  If petitioner and her              
          husband had filed jointly for 2002, their combined incomes would            
          have exceeded the threshold for qualifying for the earned income            
          credit by a married couple filing jointly with more than one                
          child.  If petitioner’s correct filing status were married filing           
          separately rather than head of household, she also would not                
          qualify for the earned income credit for that year.  See sec.               
          32(d).                                                                      




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