Robert C. Kolbeck - Page 12

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          important factor in determining reasonable cause and good faith             
          is the extent of the taxpayer’s effort to assess his proper tax             
          liability.  Sec. 1.6664-4(b)(1), Income Tax Regs.  We may give              
          weight to a taxpayer’s oral testimony regarding the fact and                
          amount of his claimed deductions.  Patterson v. Commissioner,               
          T.C. Memo. 1972-82.  However, we have declined to do so when the            
          taxpayer did not make a good faith effort to reconstruct his                
          expenses or provide any documentation or corroborative evidence             


               4(...continued)                                                        
                    •    Why the records were unavailable                             
                         and what steps were taken to secure                          
                         the records.                                                 
                    •    When and how the taxpayer became aware                       
                         that they did not have the necessary                         
                         records.                                                     
                    •    If other means were explored to                              
                         secure needed information.                                   
                    •    Why the taxpayer did not estimate                            
                         the information.                                             
                    •    If the taxpayer contacted the                                
                         Service for instructions on what to                          
                         do about missing information.                                
                    •    If the taxpayer promptly complied                            
                         once the missing information was                             
                         received; and                                                
                    •    Supporting documentation such as                             
                         copies of letters written and                                
                         responses received in an effort to                           
                         get the needed information.                                  
          6 Administration, Internal Revenue Manual (CCH), sec.                       
          20.1.1.3.1.2.5, at 45,014 (Aug. 20, 1998).                                  





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