Peter K. Chow - Page 13

                                       - 12 -                                         
               Under present law, disability benefit payments are                     
               generally considered as part of gross taxable income                   
               for federal income tax purposes.  When you are                         
               disabled, the Company will not automatically withhold                  
               income taxes from your LTD benefits.  However, you may                 
               arrange with the Company’s claim unit to have federal                  
               income taxes withheld.                                                 
               Although petitioner testified that his portion of the                  
          premium was paid with ‘after tax’ dollars, both the brochure                
          detailing the plan and the petitioner’s Pay Statement provide no            
          evidentiary corroboration for these claims.  Petitioner has                 
          failed to provide any evidence illustrating that tax was                    
          otherwise withheld from his disability payments in 2000.                    
          Accordingly, petitioner is not entitled to exclude from gross               
          income one-sixth of the total amount of disability benefits paid            
          to him in the year at issue.                                                
          4.  Additions to Tax                                                        
               a.  Section 6651(a)                                                    
               Respondent determined an addition to tax as a result of                
          petitioner’s failure to file timely his Federal income tax                  
          return for the year at issue.  Section 6651(a)(1) imposes an                
          addition to tax for failure to file a return on the date                    
          prescribed for filing, unless petitioner proves that such failure           
          to file was due to reasonable cause, and not willful neglect.               
          Sec. 6651(a)(1); Higbee v. Commissioner, 116 T.C. at 447.                   
          Respondent must carry the burden of production with respect to              







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011