Walter A. and Alfreda Kocot - Page 9

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          respondent refunded $1,472 based upon petitioners’ underlying               
          error, respondent was correct in subsequently determining a $986            
          deficiency.2                                                                
               In addition to the aforementioned claims, petitioners argued           
          at trial that respondent engaged in a “slip shod” method of                 
          examination, sending “four” notices of deficiency to petitioners,           
          and giving petitioners only “three days” to file their petition             
          with the Court.  While we acknowledge petitioners’ frustration              
          and confusion, including their receipt of three separate proposed           
          change letters, we cannot find that respondent acted improperly.            
          Petitioners received only one notice of deficiency, dated August            
          30, 2004, that clearly put them on notice that the last date on             
          which they could file a petition with this Court was November 29,           
          2004.                                                                       
               In summary, we find that line 20b of petitioners’ 2002                 
          return should be $24,329, an amount to which all parties agree,             
          and that because petitioners were awarded a refund greater than             
          their income tax liability, they are not entitled to any                    
          overpayment pursuant to Rule 55.                                            



          2 In the June 16 letter, respondent redetermined                            
          petitioners’ adjusted gross income as $95,005.  The reason for              
          this adjustment was that petitioners had reported the same                  
          amount--$24,328.70--on both lines 20a and 20b of their 2002                 
          return.  Accordingly, when respondent reduced the line 20a amount           
          by 15 percent to reflect the taxable portion thereof, the amount            
          of adjusted gross income was also reduced to $95,005.                       





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