- 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