- 3 - received by Mr. Lathrop and $9,250 of nonemployee compensation he had earned. On June 12, 2002, a notice of deficiency was issued to petitioner and Mr. Lathrop in which respondent determined a deficiency of $3,603 in Federal income tax for 2000 based on their failure to include these items of income on the return.2 Neither petitioner nor Mr. Lathrop petitioned this Court in response to the notice of deficiency. Accordingly, the deficiency was assessed. On December 9, 2002, respondent applied a $2,012 overpayment of tax from petitioner’s individual return for taxable year 2001 to the unpaid tax liability for the year at issue. Petitioner, thereafter, filed a Form 8857, Request for Innocent Spouse Relief, on July 7, 2003. She alleges that Mr. Lathrop prepared their 2000 tax return, that the omitted items of income were his income, and that she signed the return without reviewing its contents. On April 14, 2004, respondent issued a Final Notice to petitioner determining that she was not entitled to relief from joint and several liability under section 6015(b), (c), or (f) for taxable year 2000 because she was aware and knew that the tax shown on the return would not be paid at the time of filing; she had actual knowledge of the omitted income giving rise to the 2The omitted income enabled petitioner and Mr. Lathrop to qualify for an earned income credit of $406. As a result of the inclusion of the unreported income, the earned income credit was not allowable due to the limitation of sec. 32(a)(2).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011