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On January 16, 2007, respondent mailed petitioner a letter
asking whether he received $12,000 from Amex and $1,830 from
National in 2002. Petitioner responded on March 30, 2007, in a
letter stating he received $12,000 from Amex in 2002 and reported
the income on his Form 1040X, Amended U.S. Individual Income Tax
Return, for 2003 (2003 amended return) because Amex’s Form 1099-
MISC reported it paid him the $12,000 in 2003. The letter also
stated that petitioner received the $1,830 distribution in 2002.
Discussion
Petitioner admits he received $12,000 from Amex and $1,830
from National in 2002 and failed to report the income in 2002.
Petitioner contends, however, that because he reported the
$12,000 on his 2003 amended return, he was not required to report
it in 2002.
Section 451(a) provides that the amount of any item of gross
income shall be included in the gross income for the taxable year
in which received by the taxpayer, unless, under the method of
accounting used in computing taxable income, such amount is to be
properly accounted for as of a different period. Fed. Home Loan
Mortgage Corp. v. Commissioner, 125 T.C. 248 (2005).
Although petitioner reported the $12,000 in 2003 because the
Form 1099-MISC was mistakenly dated 2003, he received the amount
in 2002. Petitioner produced no evidence to show he used a
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Last modified: March 27, 2008