- 2 - The issue for decision is whether, under section 6015(g), petitioner is entitled to a credit or refund by virtue of having been granted relief from joint liability under section 6015(c) for taxable years 1995 and 1996.2 Some of the facts were stipulated. Those facts, with the annexed exhibits, are so found and are made part hereof. Petitioner’s legal residence at the time the petition was filed was Perry, Florida. The relevant facts in this case are not in dispute. On a joint Federal income tax return for 1995, petitioner and her husband, Rory A. Murray, claimed a refund of $2,060. That refund was based on excess withholdings and a $1,091 earned income credit. They failed to report as income taxable wages of $564 and nonemployee compensation of $7,593 earned by Mr. Murray. On September 30, 1997, a notice of deficiency for the taxable year 1995 was issued to petitioner and her husband that adjusted their income to include the two items of unreported income. As a result of this additional income, the earned income credit was not allowable due to the limitation of section 32(a)(2). The deficiency determined in the notice of deficiency was $3,263. 2Sec. 6015 applies to liabilities that arose “after July 22, 1998, and to liabilities that arose prior to July 22, 1998, that were not paid on or before July 22, 1998,” making petitioner eligible for relief under sec. 6015. Sec. 1.6015-8, Income Tax Regs.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011