- 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 toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011