Juan Rodriguez - Page 25




                                        - 25 -                                        
                  this payment would not be taxable income; hence                     
                  reasonable cause and not willful neglect.  For                      
                  these reasons, the respondent's determination                       
                  should not be sustained.                                            

                  Thus, petitioner argues that his failure to file his                
             1993 return is due to "reasonable cause and not willful                  
             neglect".  Sec. 6651(a)(1).  Respondent argues that                      
             "petitioner failed to timely file an income tax return for               
             the taxable year 1993 and presented no evidence disputing                
             the assertion of the addition to tax."  We find that                     
             petitioner's argument lacks merit.                                       
                  Petitioner admitted at trial that he received the                   
             lump-sum payment of $100,000 from the FBI and he owed tax                
             on the payment.  He testified as follows:                                

                  THE COURT:    * * * Do you admit that $100,000 is                   
                                income?  * * *                                        
                  THE WITNESS: I admit that was income.  * * *                        
                                *    *    *    *    *    *    *                       
                  THE WITNESS: I know I owe taxes on it.  But I figure                
                                a reasonable amount should be used for                
                                relocation of me.                                     

             Thus, petitioner admittedly earned substantial taxable                   
             income during 1993, and he was required to file a return                 
             for that year.  See sec. 6012(a).                                        
                  Petitioner's posttrial brief implies that he relied on              
             the statements of unnamed FBI agents that the subject lump-              





Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011