- 11 - conclude that the 2000 reporting should be altered in two respects. First, having learned that the eConnect stock was acquired in 1999, rather than 1998, Mr. Gill realized that the gain generated upon disposition was short term in nature. Second, based upon the fact that the Valdes & Moreno account was jointly held by decedent and Mr. Greene, Mr. Gill was of the opinion that the gain should have been split evenly between the two joint tenants. The IRS disagreed that the gain was so divisible and on January 15, 2004, issued to decedent a notice of deficiency determining the aforementioned deficiency and accuracy-related penalty. The notice reflected two adjustments: Interest income was increased by $975 reported to the IRS by Wells Fargo Bank, and the eConnect sales were reclassified as resulting in short- term capital gain. Shortly thereafter, the estate submitted to the IRS a Form 1040X, Amended U.S. Individual Income Tax Return, on behalf of decedent for the year 2000. Mr. Gill prepared the amended return incorporating only one-half of the proceeds from the eConnect sales but treating the concomitant capital gains as short term. The net effect was a decrease in total tax of $21,451, for which the estate requested a refund. The amended return was received by the IRS on February 9, 2004, but was not processed. A noticePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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