William Paul Benedetti - Page 6

                                        - 5 -                                         

          that his argument possesses some degree of colorable merit.  See            
          Crain v. Commissioner, 737 F.2d 1417 (5th Cir. 1984).  In short,            
          petitioner is a taxpayer subject to the income tax laws, and he             
          is liable for income tax on the compensation and other income               
          paid to him during the year in question.  His argument is                   
          rejected.                                                                   
               The second issue is whether petitioner is liable for the               
          addition to tax under section 6651(a)(1).  Section 6651(a)(1)               
          imposes an addition to tax for a taxpayer's failure to file                 
          timely returns, unless the taxpayer can establish that such                 
          failure "is due to reasonable cause and not due to willful                  
          neglect".  As noted earlier, petitioner's return was not                    
          processed as a return by respondent.  The purported return listed           
          only zeros as income.  There are a host of cases where returns              
          that showed no income have been held not to be "returns", and the           
          penalty for failure to file was imposed.  Turner v. Commissioner,           
          T.C. Memo. 2004-251; Halcott v. Commissioner, T.C. Memo. 2004-              
          214; Green v. Commissioner, T.C. Memo. 1992-49; Howell v.                   
          Commissioner, T.C. Memo. 1981-631.  Where a purported return does           
          not contain any information upon which the tax can be computed,             
          the submitted form does not constitute a return.  Turk v.                   
          Commissioner, T.C. Memo. 1991-198.  Respondent, therefore, is               
          sustained on the addition to tax under section 6651(a)(1).                  







Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011