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that also shows $942.31 of Federal income tax withholdings; (2)
prepared Federal income tax returns for other individuals; and
(3) made cash contributions totaling $1,315 to the Brooklyn
Tabernacle Deliverance Center.
Petitioner’s timely filed 2000 Federal income tax return
shows her name as the “paid preparer” and “Marcy Multiservice
Center” as the name of the firm of the paid preparer. On that
return petitioner: (1) Reported wage income of $12,360; (2)
claimed exemption deductions for herself and three dependents;
(3) claimed the standard deduction; and (4) claimed an earned
income credit computed by treating each of two dependents as a
qualifying child. Petitioner did not elect to itemize deductions
on her 2000 return, and she did not include a Schedule C, Profit
and Loss from Business, with that return. Her return shows no
taxable income and no income tax liability. The $4,157 refund
claimed on petitioner’s return consists of $1,245 of Federal
income tax withholdings from her wages and a $2,912 earned income
credit. Attached to petitioner’s return is a Form W-2 from the
City of New York that reports the wages and income tax
withholdings shown on petitioner’s return.1
In the notice of deficiency respondent increased
petitioner’s income by $11,286, which is the difference between
1 No explanation has been provided for the discrepancies
between the Forms W-2 contained in the record.
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Last modified: May 25, 2011