- 38 - * * * * * * * (B) with respect to which a return, if required-- (i) was not filed; * * * In the instant case, respondent did not process and file as tax returns the 1996 Form 1040 and the 1997 Form 1040A which respondent received from petitioners and in which petitioners reported total income of $0 and total tax of $0. That was because respondent determined that those documents were frivolous.6 An individual debtor is not discharged in a bankruptcy proceeding from a debt for tax with respect to which a return is not filed. 11 U.S.C. sec. 523(a)(1)(B)(i). On the record before us, we find that pursuant to 11 U.S.C. sec. 523(a)(1)(B)(i) the U.S. Bankruptcy Court did not discharge petitioners from their unpaid liability for 1996 and petitioners’ unpaid liability for 1997. Based upon our examination of the entire record before us, we find that respondent did not abuse respondent’s discretion in determining to proceed with the collection action as determined in the notice of determination with respect to petitioners’ taxable years 1996, 1997, and 1999. Although respondent does not ask the Court to impose a 6We have recently observed: “The majority of courts, including this Court, have held that, generally, a return that contains only zeros is not a valid return.” Cabirac v. Commissioner, 120 T.C. 163, 169 (2003).Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Next
Last modified: May 25, 2011