- 2 - Respondent determined a deficiency in Federal income tax for petitioner’s 2002 taxable year. After concessions,1 the sole issue for decision is whether certain disability benefits received by petitioner Randy Gene Shreve (petitioner) under a workmen’s compensation act are includable in gross income pursuant to section 86(a). Background Some of the facts and certain exhibits have been stipulated. The parties’ stipulations of fact are incorporated in this opinion by reference and are found as facts in the instant case. At the time of filing the petition in the instant case, petitioners resided in Fernandina Beach, Florida. Petitioner is disabled and receives disability benefits from the Social Security Administration and under a workmen’s compensation act (workmen’s compensation act). Petitioners filed their 2002 tax return but did not report as income any Social Security disability benefits. However, based on a Form SSA-1099, Social Security Benefit Statement, respondent determined that petitioner had received $7,537 in taxable disability benefits during 2002, of which the Social Security Administration directly paid petitioner $1,512 and the remainder was received under a workmen’s compensation act. In the notice of deficiency sent to 1At trial, petitioners conceded that they owe tax on certain interest income and a State tax refund.Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011