- 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, thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011