William Ray Smith - Page 9

                                        - 9 -                                         
          income from the sale of timber to C&D.  In 1993, however,                   
          petitioner received 47 gold coins in exchange for $17,811.45                
          worth of timber, and in 1994, petitioner received somewhere                 
          between four and five gold coins in exchange for $1,635 worth of            
          timber.  Accordingly, we hold that petitioner had unreported                
          income from the sale of timber for 1993 and 1994 of $17,811.45              
          and $1,635, respectively.                                                   
          Issue 2.  Additions to Tax--Section 6651(a)(1)                              
               Respondent determined that pursuant to section 6651(a)(1)              
          petitioner was liable for late filing penalties of $1,018,                  
          $1,054, and $1,092 for 1992, 1993, and 1994, respectively.                  
          Petitioner did not address this issue.                                      
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a return on the date prescribed (determined with regard to             
          any extension of time for filing), unless it is shown that such             
          failure is due to reasonable cause and not due to willful                   
          neglect.  Sec. 6651(a)(1); Webb v. Commissioner, T.C. Memo. 1993-           
          521, affd. without published opinion 46 F.3d 1149 (9th Cir.                 
          1995).  However, a taxpayer who is entitled to make a joint                 
          return and whose gross income, when combined with the gross                 
          income of his spouse, is, for the taxable year, less than the sum           
          of twice the exemption amount plus the applicable standard                  
          deduction is generally exempt from filing a return.  Sec.                   
          6012(a)(1)(A)(iv).  The filing exception under section 6012(a)              
          generally does not apply to any individual who has net earnings             




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

Last modified: May 25, 2011