-7-
issue because his then wife, Ora Mae Thomas, supported him,
herself, and their daughter. Based on the facts in the record,
however, we find this claim implausible. The Bureau of Labor
Statistics indicate that a three-member household incurred
average annual living expenses during 1987, 1988, and 1989 in the
respective amounts of $28,549, $30,446, and $32,643. Ora Mae
Thomas earned wage income during 1987, 1988, and 1989 in the
respective amounts of $10,434.79, $5,705.21, and $12,762.00.
That she could support a three-member household on such a meager
income seems unlikely.
Accordingly, we find that petitioner earned self-employment
income in the amounts determined by respondent for the years in
issue.
2. Additions to Tax Under Section 6651(a)(1)
Respondent determined an addition to tax under section
6651(a)(1) for each year in issue, asserting that petitioner
failed to file Federal income tax returns. In order to avoid
this addition to tax, petitioner must prove that his failure to
file was: (1) Due to reasonable cause and (2) not due to willful
neglect. Sec. 6651(a); United States v. Boyle, 469 U.S. 241, 245
(1985); In re Sanford, 979 F.2d 1511, 1512 (11th Cir. 1992). A
failure to file a Federal income tax return is due to reasonable
cause if the taxpayer exercised ordinary business care and
prudence and, nevertheless, was unable to file the return within
the prescribed time. In re Sanford, supra at 1514; sec.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011