Charles R. Godwin et al. - Page 12

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          care to set aside otherwise available liquid funds to pay                   
          estimated tax during 1997 and 1998 or to pay their 1997 Federal             
          income tax liability on time in 1998.  They disabled themselves             
          from so doing by using the proceeds of the $1 million fee to                
          invest in timberland, pour funds into building their new house,             
          and substantially increase their charitable contributions, rather           
          than set aside some portion of the fee in readily accessible                
          Treasury bills, certificates of deposit, or other money-market              
               After making some preliminary observations about judicial              
          review, burden of proof, and respondent’s extensions of time to             
          file and pay, we hold petitioners are liable for the section                
          6654(a) and 6651(a)(2) additions to tax for late payments and the           
          section 6651(a)(1) addition to tax for late filing.  We also                
          sustain respondent’s levy, rejecting petitioners’ claim that the            
          Appeals officer abused his discretion.                                      
               The amounts of some of the additions to tax set forth in               
          respondent’s trial memorandum appear facially incorrect and do              
          not correspond to the amounts set forth in the October 24, 1999,            
          notice of intent to levy.  Petitioners did not object to the                
          absence from the record of Form 4340, Certificate of Assessment,            
          or request inclusion of that form in the record to verify the               
          validity of the assessments.  See secs. 6330(c)(1), 6203; sec.              
          301.6203-1, Proced. & Admin. Regs.  Respondent conceded on brief            

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