- 6 - In order to determine whether a tax return is valid, we follow the test enunciated in Beard v. Commissioner, 82 T.C. 766, 777 (1984), affd. 793 F.2d 139 (6th Cir. 1986): First, there must be sufficient data to calculate tax liability; second, the document must purport to be a return; third, there must be an honest and reasonable attempt to satisfy the requirements of the tax law; and fourth, the taxpayer must execute the return under penalties of perjury. The requirement that petitioner has made “an honest and reasonable attempt” to satisfy the tax law is not met in the current case. Petitioner’s attachment to the Form 1040 contained tax-protester arguments that have been consistently rejected by this and other courts. Additionally, the Form 1040 filed by petitioner did not contain sufficient information to constitute a valid return. Despite petitioner’s admission of the receipt of various payments from third parties, he filed a zero tax return. The section 6651(a)(1) addition to tax applies in the case of a failure to file a Federal income tax return unless it is shown that such failure is due to reasonable cause and not to willful neglect. Higbee v. Commissioner, 116 T.C. 438, 447 (2001). It must be shown that the taxpayer exercised business care and prudence but nevertheless was unable to file the return within the specified time. See United States v. Boyle, 469 U.S. 241, 245 (1985); sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Willful neglect means a conscious, intentional failure, or reckless indifference. United States v. Boyle, supra at 245.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011