- 5 -
importantly, the extent to which the taxpayer attempted to assess
the proper tax liability. See Neely v. Commissioner, 85 T.C. 934
(1985); Stubblefield v. Commissioner, T.C. Memo. 1996-537; sec.
1.6664-4(b)(1), Income Tax Regs.
Petitioner argues that he had reasonable cause for the
failure to report the compensation from Czarnowski because he did
not receive the Form 1099-MISC, the receipt of which would have
“notified him of the believed inaccuracy and afforded him the
opportunity to act in accordance with such.” Petitioner held two
jobs in 1999, but he reported only the wages he received from
Sparks-Piper. Petitioner did not need to receive a Form 1099-
MISC to be alerted to the fact that he received compensation from
Czarnowski for his services.
Alternatively, petitioner claims there is substantial
authority that he was an employee, and not an independent
contractor, of Czarnowski. Section 6662(d)(2)(B)(i) provides
that “The amount of the understatement * * * shall be reduced by
that portion of the understatement which is attributable to * * *
the tax treatment of any item by the taxpayer if there is or was
substantial authority for such treatment”. Respondent has
conceded that petitioner was an employee of Czarnowski.
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011