- 8 -
Petitioners filed their 1987 Federal income tax return on
March 19, 1993. At trial, petitioner stated that on-going audits
of his Canadian income tax returns by Revenue Canada since 1985,
and the increased complexity of the Internal Revenue Code after
the Tax Reform Act of 1986, interfered with the filing of
petitioners' return. The audit of petitioners' Canadian returns,
however, was completed and resolved sometime in 1989.
Petitioner is an attorney employed as the executive of a
large Canadian corporation. If petitioners did not have the
expertise to file their 1987 return in an accurate and timely
manner, they could have retained counsel or other professional
assistance. Despite the fact that their Canadian audit was
completed in 1989, petitioners waited until March 19, 1993, to
file their 1987 return. Petitioners' failure to file their 1987
return in a timely manner was not reasonable. Accordingly,
petitioners are liable for the addition to tax under section
6651(a)(1).
Petitioners failed to establish that they should not be held
liable for the addition to tax under section 6653(a)(1). At the
time petitioners filed their 1987 return, the Lindsey case had
been decided by our Court. As a result, petitioners were on
notice that the alternative minimum tax foreign tax credit
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011