- 14 -
Thus, it is clear that petitioner knew of her obligation to file
tax returns.
Petitioner stated that the reason she did not file Federal
income tax returns for the 1993 and 1994 taxable years was
because she “ran out of money.” Inability to pay, however, does
not relieve a taxpayer of his or her obligation to properly and
timely file an income tax return. See Bowden v. Commissioner,
T.C. Memo. 1996-318 (taxpayer’s alleged inability to pay tax was
not reasonable cause for late filing). Petitioner also stated
that she did not file her Federal income tax returns in protest
over a dispute with the IRS concerning FICA overwithholding by
her former employer, TWA, for the 1988 taxable year. The
existence of a dispute or protest with the IRS does not
constitute reasonable cause for not timely filing one’s returns
for subsequent years. See Glowinski v. Commissioner, 25 T.C. 934
(1956), affd. per curiam 243 F.2d 635 (D.C. Cir. 1957)
(taxpayer’s dispute with IRS concerning liability for prior tax
years was not reasonable cause for not filing for year in
question).
The fact that petitioner lacked the ability to pay the tax
liability and the fact that petitioner was in disagreement with
the Commissioner concerning a prior taxable year do not
constitute reasonable cause for failing to file Federal income
tax returns for the 1993 and 1994 tax years. Accordingly,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011