Brenda Frances Barlett lost a lawsuit in United States Tax Court regarding her 2008 individual income tax return. T.C. Memo. 2012-254.
She prepared her own return on TurboTax, reporting a total tax of $44,619. The IRS determined the correct liability was $88,287, and the tax court agreed.
No facts were in dispute. She received $223,870 from her employer retirement plan when she retired. She only reported $119,400 as taxable, but it was all taxable.
Because the understatement of her income tax was more than $5,000 and more than 10 percent of the tax that should have been shown on her …