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deficiency of $623 based on the failure of petitioners to include
as gross income on their return $4,147 in wage and salary income.
The $623 determined deficiency reduced petitioners’ overpayment
from $2,374.66 to $1,751.66. Although the sequence of events is
not entirely clear from the record, petitioners were advised at
some point that respondent proposed to transfer, transmit, or pay
the overpayment under section 6402(d) to a Federal agency (which
was not named at trial) as a setoff or payment of an indebtedness
owing solely by Mr. Wolfgram. Mr. Wolfgram has not denied owing
the indebtedness.
On or about this time, Mrs. Wolfgram filed with the IRS Form
8379, Injured Spouse Claim and Allocation, for a refund of all or
a portion of the overpaid 2001 taxes, based on the fact that
approximately 97 percent of the income reported on the 2001
income tax return represented her earnings, and, under
appropriate provisions of the Internal Revenue Code, she would be
“injured” if the overpayment of taxes attributable to her income
was used to pay the separate indebtedness of her spouse. IRS
agreed with that position, and, according to counsel for
respondent at trial, one-half of the acknowledged overpayment of
$1,751.66 was paid to her.
When the case was called for trial, counsel for respondent
orally conceded the $623 deficiency after petitioners satisfied
counsel that the omitted wage and salary income had been included
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Last modified: May 25, 2011