- 7 - In view of his failure to substantiate, we hold that petitioner is not entitled to the deductions claimed by him on his Schedule C. B. Addition To Tax Under Section 6651(a)(1) Section 6651(a)(1) imposes an addition to tax for failure to timely file a return. Whether petitioner is liable for this addition turns on whether he timely filed his 1998 income tax return. Absent an extension of time to file, petitioner’s 1998 income tax return was required to be filed by Thursday, April 15, 1999. See sec. 6072(a). Because petitioner filed Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, the time within which petitioner was required to file his return was extended by 4 months.4 Thus, the filing deadline became August 15, 1999. But because that 3(...continued) F.3d (8th Cir. 2001). In other words, petitioner may not avoid meeting his burden of proof by asserting that he has a right not to testify. United States v. Rylander, supra at 761; Traficant v. Commissioner, 89 T.C. 501, 504 (1987), affd. 884 F.2d 258 (6th Cir. 1989). Indeed, in a civil case, “the Court may draw a negative inference from facts over which petitioner has asserted his Fifth Amendment privilege against self- incrimination.” Traficant v. Commissioner, supra, citing Baxter v. Palmigiano, 425 U.S. 308 (1976). The negative inference that we would draw in this case is that petitioner lacks substantiation for the deductions that he claimed on his return. 4 At trial, respondent raised no issue regarding the timeliness of Form 4868 or whether petitioner properly estimated his tax liability thereon. See Crocker v. Commissioner, 92 T.C. 899, 910 (1989). Accordingly, we proceed on the basis that Form 4868 was both timely filed and valid.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011