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affd. without published opinion 70 F.3d 637 (D.C. Cir. 1995);
Gray v. Commissioner, T.C. Memo. 1982-392. The decision of the
administrative law judge in the record herein demonstrates
petitioner’s medical infirmities, which existed when petitioners
filed their return for the year in issue. Petitioner’s medical
history as documented in his disability hearing shows that he was
subject to grand mal seizures, a major depressive disorder,
debilitating headaches, and other chronic pain. Further,
petitioners’ opening brief and other submitted documents suggest
that he does not have a sophisticated knowledge of the tax laws.
In these circumstances, we believe that petitioners’ failure to
include the disability payments in income was due to reasonable
cause under section 6664(c)(1). Thus, the underpayment arising
from the omitted income is not subject to accuracy-related
penalties under section 6662(b)(2).
To reflect the foregoing,
An appropriate order will
be issued, and decision will be
entered for respondent with
respect to the deficiency and
for petitioners with respect to
the accuracy-related penalty.
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