- 6 - efforts to fill out and file his tax return. Petitioner sought help from the IRS both in person and telephonically and produced at trial tax forms he attempted to fill out based on the telephonic advice and the forms’ instructions. However, initial reasonable cause may not exist indefinitely. At some point petitioner ceased acting as a reasonable and prudent business person because he terminated his active efforts to comply with the law and never filed his 2000 tax return. Notably, the record does not reflect that petitioner applied to respondent for an extension of time to file his 2000 tax return. Petitioner also contends that he did not file his 2000 return because he mistakenly believed he did not generate sufficient income. Petitioner’s belief, without any confirmation from a knowledgeable tax adviser, that no tax is due or that petitioner is entitled to a refund does not constitute reasonable cause. Ferguson v. Commissioner, T.C. Memo. 1994-114. Although the Court is sympathetic to petitioner and the circumstances of his case, the Court concludes that petitioner has not demonstrated reasonable cause for failing to file his 2000 tax return. Therefore, the Court sustains the imposition of an addition to tax pursuant to section 6651(a)(1). The Court has considered all of petitioner’s contentions, arguments, requests, and statements. To the extent not discussed herein, we conclude that they are meritless, moot, or irrelevant.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011