- 7 - is incorrect. Id. The parties stipulate that petitioner filed his 1998 tax return 2 years late. In addition, the parties stipulate that petitioner has not fully paid his 1998 tax liability. We find that, on these facts, respondent met his burden of production under section 7491(c). As a result, petitioner must come forward with evidence sufficient to persuade the Court that respondent’s determination that petitioner is liable for the section 6651(a)(1) and (a)(2) additions to tax is incorrect. A showing of reasonable cause requires the petitioner to demonstrate that he exercised ordinary business care and prudence, but nevertheless was unable to file or pay the tax within the prescribed time. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs. For illness to constitute reasonable cause for failure to file, petitioner must show that it incapacitated him to such a degree that he could not file his returns. Williams v. Commissioner, 16 T.C. 893, 905-906 (1951); see, e.g., Joseph v. Commissioner, T.C. Memo. 2003-19 (“Illness or incapacity may constitute reasonable cause if the taxpayer establishes that he was so ill he was unable to file.”); Black v. Commissioner, T.C. Memo. 2002-307 (“[W]e are unpersuaded that illness is the cause of petitioners’ continuing delinquency.”), affd. 94 Fed. Appx. 968 (3d Cir. 2004); Watts v. Commissioner, T.C. Memo. 1999-416 (“[A] taxpayer’s selective inability to perform his or her taxPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011