- 4 - Several years before 1996, Dr. Velez was diagnosed as having contracted, and received treatment for, hepatitis C, but his illness remained dormant until 1997. On March 19, 1997, petitioner and Dr. Velez filed a chapter 13 bankruptcy petition. The bankruptcy court granted a discharge on March 17, 1998, and as a consequence, Bank of America was allowed to foreclose on petitioner’s personal residence. In April 1997, petitioner took a job at Waremart, Inc., to help support her family. Dr. Velez’s health started to decline rapidly in 1998, and he would be unable to work in 1999 and 2000. The University of California at Davis offered Dr. Velez a position as a forensic resident in 1998 at a salary close to what he had been making before the lawsuit. But he was advised by his doctor that he would not be capable of performing his duties without a liver transplant. Dr. Velez applied for a transplant, but petitioner’s health insurer denied the request. Without the benefit of a transplant, Dr. Velez was forced to decline the employment offer from the University of California at Davis. On August 27, 1999, petitioner and Dr. Velez filed their joint Federal income tax return for 1997. The return was filed without remittance of the $1,990 tax shown to be due. Of the $25,658 of total income reported on the 1997 tax return, $8,465 consisted of petitioner’s wages and the balance was income of Dr.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008