Tobias Weiss and Gertrude O. Weiss - Page 2




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                                     Background                                       
               The parties have stipulated all the relevant facts, which we           
          incorporate herein by this reference.  When they petitioned the             
          Court, petitioners resided in Connecticut.                                  
               On line 9b of their 2005 Form 1040, U.S. Individual Income             
          Tax Return, petitioners reported $24,376 of qualified dividends.1           
          They did not, however, include this amount in the $265,408 which            
          they reported as taxable income and upon which they reported tax            
          of $68,809.  Instead, they separately computed $3,656 of tax on             
          the qualified dividends (15 percent of $24,376), which they                 
          designated by handwritten notation as a “Qualified Dividend Tax”            
          on line 45 of Form 1040, which calls for the amount of                      
          “Alternative minimum tax”.  Adding this amount to the $68,609 of            
          tax that they had computed on their reported taxable income, they           
          reported total tax of $72,266.                                              
               Respondent treated petitioners’ omission of their qualified            
          dividends from taxable income as a “math error”.  After taking              
          into account this and other “math errors”, respondent determined            
          that petitioners’ taxable income was $315,532 rather than the               
          $265,408 that they had reported.2  Pursuant to section 6213(b),             


               1 Monetary amounts in this Opinion have been rounded to the            
          nearest dollar.                                                             
               2 The other “math errors” related to petitioners’ Schedule             
          E, Supplemental Income and Loss, expenses and the calculation of            
          the taxable amount of their Social Security income.  At trial,              
                                                             (continued...)           





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