- 10 -
On March 22, 2003, petitioner filed a Form 1040X amending
his 2001 Federal income tax return (2001 amended return) together
with an attached Form 8275. The return was prepared by Mr.
Isaacson and was initially accepted by the IRS. It reported the
same regular income and itemized deductions as the original 2001
return. However, unlike the original 2001 return, the 2001
amended return reflected petitioner’s assertion that the section
83(b) election made in 2000 was invalid as to the nonvested
shares. As a result, the amended return reported $340,213 of
AMTI, which was the spread between FMV and the exercise price for
the Ariba stock granted under option No. 117, which vested in
petitioner throughout the 2001 tax year.
After deducting a $12,720 payment, the return reported a
total tax liability of $88,125 consisting entirely of AMT.
Petitioner failed to remit the full amount of tax due with his
amended return. Respondent assessed a tax liability of $100,845
for 2001 and sent a notice of balance due on May 19, 2003.
Petitioner has not fully paid the balance.
3. Other Amended Returns for 2000 and 2001
Petitioner filed additional Forms 1040X for 2000 and 2001
based upon Mr. Isaacson’s advice. Each Form 1040X was prepared
by Mr. Isaacson and included Form 8275, although neither was
accepted by the IRS. The 2000 Form 1040X Explanation of Changes
to Income, Deductions and Credits stated:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011