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4. Social Security Benefits
Respondent determined that petitioner had taxable Social
Security benefits of $3,246 in 1992 and $3,342 in 1993.
Petitioner contends that his Social Security payments were
nontaxable because they were disability benefits. We disagree;
Social Security disability benefits are taxed the same as other
Social Security benefits.4 Sec. 86(d)(1); Thomas v.
Commissioner, T.C. Memo. 2001-120.
B. Whether Petitioner Is Liable for the Addition to Tax for
Failure To Timely File His 1992 and 1993 Returns and the
Accuracy-Related Penalty Under Section 6662 for 1992-94
1. Failure To File Timely
A taxpayer is liable for an addition to tax of up to 25
percent for failure to file timely a Federal income tax return
unless the failure was due to reasonable cause and not willful
neglect. Sec. 6651(a)(1).
Petitioner filed his 1992 and 1993 returns late. Thus,
petitioner bears the burden of proving that the failure is due to
reasonable cause and not willful neglect.5 Rule 142(a)(1);
United States v. Boyle, 469 U.S. 241, 245 (1985).
4 Petitioner does not contend that respondent applied the
formula in sec. 86 incorrectly. Any adjustments to petitioner’s
modified adjusted gross income will be made during computations
under Rule 155.
5 Sec. 7491 does not apply to this proceeding. See note 2
above.
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Last modified: May 25, 2011