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In order to determine whether a tax return is valid, we
follow the test enunciated in Beard v. Commissioner, 82 T.C. 766,
777 (1984), affd. 793 F.2d 139 (6th Cir. 1986):
First, there must be sufficient data to calculate tax
liability; second, the document must purport to be a
return; third, there must be an honest and reasonable
attempt to satisfy the requirements of the tax law; and
fourth, the taxpayer must execute the return under
penalties of perjury.
The requirement that petitioner has made “an honest and
reasonable attempt” to satisfy the tax law is not met in the
current case. Petitioner’s attachment to the Form 1040 contained
tax-protester arguments that have been consistently rejected by
this and other courts. Additionally, the Form 1040 filed by
petitioner did not contain sufficient information to constitute a
valid return. Despite petitioner’s admission of the receipt of
various payments from third parties, he filed a zero tax return.
The section 6651(a)(1) addition to tax applies in the case
of a failure to file a Federal income tax return unless it is
shown that such failure is due to reasonable cause and not to
willful neglect. Higbee v. Commissioner, 116 T.C. 438, 447
(2001). It must be shown that the taxpayer exercised business
care and prudence but nevertheless was unable to file the return
within the specified time. See United States v. Boyle, 469 U.S.
241, 245 (1985); sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
Willful neglect means a conscious, intentional failure, or
reckless indifference. United States v. Boyle, supra at 245.
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Last modified: May 25, 2011