- 6 - they reported $179,368 as taxable income from pensions and annuities, and reported a deduction for alimony paid of $116,350. In 2004, they filed a Form 1040X, Amended U.S. Individual Income Tax Return, for 2002. On the Form 1040X, they removed the $179,368 distribution from pensions and annuities income and the $116,350 deduction for alimony paid. Ms. Amarasinghe also filed a 2002 Form 1040 in 2003. On her return, Ms. Amarasinghe reported income of $75,318 as alimony received and did not report any income from pensions and annuities. On May 26, 2006, respondent issued a notice of deficiency to Dr. Amarasinghe and his spouse. Respondent effectively disallowed the Form 1040X amended return and determined that the deduction for alimony paid was limited to $75,318. After adjusting their deductions and credits, respondent determined a deficiency in income tax of $12,085 for 2002. On May 26, 2006, respondent issued a notice of deficiency to Ms. Amarasinghe. Respondent determined that she received pension income in the amount of $179,368 and that she received no alimony income in 2002. After adjusting her deductions and exemptions, respondent determined a deficiency in income tax of $36,548. Petitioners timely filed separate petitions with this Court.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008