- 4 - 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 apparentlyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011