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At trial, petitioner offered photocopies of what he contends
are retained copies of his 1995, 1996, and 1997 tax returns as
evidence that he timely filed the returns. All of the copies
correctly reported petitioner’s Social Security number. The
Court, however, has reason to doubt whether the retained copies
are, in fact, retained copies of filed 1995, 1996, and 1997 tax
returns.
When petitioner’s Forms W-2 are compared to the retained
copies, several discrepancies stand out. The retained 1995 and
1996 copies show more income than respondent’s records or the
Forms W-2. For 1995, petitioner claimed a Federal income tax
withholding credit of $7,451 when Form W-2 shows a withholding of
only $2,414. For 1996, he claimed a credit of $7,506 when Form
W-2 shows $3,605. For 1997, he claimed a credit of $11,063 when
Form W-2 shows $5,670. Petitioner has failed to establish a
reason for claiming almost double, and in 1995, triple, the
amount of Federal income tax withholding credits as shown on the
Forms W-2.
Assuming that the retained copies were filed, petitioner
should have received tax refunds for years 1995, 1996, and 1997
based on the Federal income tax withholding credits claimed.
Petitioner testified that he never received any of the refunds.
He testified that he thought it was because the Department of
Education took the refunds and applied them against the
outstanding balance of his student loans. Petitioner failed to
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