Barry Appel - Page 8

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          illness incapacitated the taxpayer to such a degree that he or              
          she was unable to file the return.  See Snyder Air Prods., Inc.             
          v. Commissioner, 71 T.C. 709, 718 (1979); Marrin v. Commissioner,           
          T.C. Memo. 1997-24, affd. 147 F.3d 147 (2d Cir. 1998).                      
               The record does not establish that the failures to file were           
          due to reasonable cause and not willful neglect.  While                     
          petitioner and Barbara Appel had health problems during the years           
          in issue, petitioner continued working at the American Stock                
          Exchange.  Petitioner’s health did not prevent him from caring              
          for his spouse, managing the affairs of the household, or                   
          requesting an extension to file his 1997, 1998, and 1999 Federal            
          income tax returns.  While we sympathize with the ongoing medical           
          issues of petitioner and his spouse and acknowledge the                     
          substantial amount of time and energy expended by petitioner as a           
          caregiver to his spouse, we do not conclude that petitioner was             
          so incapacitated so as to constitute reasonable cause for failing           
          to file returns for the years in issue.  Respondent is sustained            
          on this issue.                                                              
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
               To reflect the foregoing and the parties’ concessions,                 

                                                   Decision will be entered           
                                             under Rule 155.                          







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