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1. The Taxable Year 2001
On their joint 2001 Federal income tax return, the Hunters
reported $700,725.97 of adjusted gross income and zero tax. The
Commissioner erroneously assessed $135,924.49 of tax against the
Hunters, as well as penalties and interest. The assessment was
erroneous because the Commissioner had not issued a notice of
deficiency to the Hunters.
The Commissioner abated the assessment for 2001 and issued a
notice of deficiency. The Commissioner determined a $131,093
deficiency in the Hunters’ 2001 income tax and a $26,218.60
penalty under section 6662. Although the Hunters sought judicial
review of that determination, their case was dismissed for
failure to state a claim upon which relief may be granted, and a
decision was entered for the full deficiency and addition to tax.
See Hunter v. Commissioner, T.C. Memo. 2005-219. No appeal from
the decision in that case was taken, and it is now final.
2. The Taxable Year 2002 Collection Case
On their joint 2002 Federal income tax return, the Hunters
reported $63,427.60 of tax and claimed $136,137.65 of tax
payments for a claimed overpayment of $72,710.05. According to
the return, the payments consist of $213.16 of withholding
credits and $135,924.49 of payments applied from the taxable year
2001. The latter figure reflects the amount of the premature
assessment for 2001 that was abated. The Hunters apparently
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Last modified: May 25, 2011