- 2 - 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...)Page: Previous 1 2 3 4 5 6 NextLast modified: March 27, 2008