Brenda Frances Barlett lost a lawsuit in the United States Tax Court regarding her 2008 individual income tax return. T.C. Memo. 2012-254.
She prepared her own return on Turbo Tax, reporting a total tax of $44,619. IRS determined the correct liability was $88,287 and the Tax Court agreed with IRS.
No facts were in dispute. She received $223,870 from the employer retirement plan when she retired. She only reported $119,400 as taxable, but it was all taxable. She underreported her pension income by over $100,000.