Jane C. Barber - Page 7

                                        - 7 -                                         
          that there was available to petitioner sufficient information to            
          prepare a timely return but that petitioner made no effort to do            
          so, and that financial difficulties do not excuse a failure to              
          file timely.                                                                
               It is well established that incapacity on the part of a                
          taxpayer due to mental or physical illness is reasonable cause              
          for failure to file timely.  Williams v. Commissioner, 16 T.C.              
          893, 906 (1951); Brown v. United States, 630 F. Supp. 57, 60                
          (M.D. Tenn. 1985); see also United States v. Boyle, supra at 248            
          n.6.  A mental or emotional disorder, however, does not excuse a            
          failure to file timely unless it is shown that the disorder                 
          rendered the taxpayer incapable of exercising ordinary business             
          care and prudence during the period that the failure to file                
          continued.  Estate of Scull v. Commissioner, T.C. Memo. 1994-211;           
          Akins v. Commissioner, T.C. Memo. 1993-256, affd. without                   
          published opinion 35 F.3d 577 (11th Cir. 1994); Farley v.                   
          Commissioner, T.C. Memo. 1993-31.  Moreover, a taxpayer's                   
          selective inability to meet his or her tax obligations when he or           
          she can carry on normal activities does not excuse late filing or           
          failure to file.  See Estate of McClanahan v. Commissioner, 95              
          T.C. 98, 101-102 (1990); Tabbi v. Commissioner, T.C. Memo. 1995-            
          463, and cases cited therein.                                               
               Although, in the instant case, petitioner experienced                  
          emotional trauma as a result of the arrests of her husband, the             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011