Paul E. Ballmer - Page 10

                                       - 10 -                                         
               Petitioner’s attempt to cloak his argument of reasonable               
          cause in the initial Murphy decision is also unpersuasive.                  
          First, as discussed above, the Court of Appeals for the D.C.                
          Circuit vacated its initial decision and has since determined               
          that damages for emotional distress are gross income.  Further,             
          there is no evidence before the Court that petitioner performed             
          an analysis similar to that of the D.C. Circuit, nor that he                
          received any advice from a competent tax professional, at the               
          time he chose not to file a return for 2001.                                
               We find that petitioner has failed to meet his burden of               
          demonstrating that his failure to file a return was due to                  
          reasonable cause and not willful neglect.  Thus, petitioner is              
          liable for the addition to tax for failure to file under section            
               Respondent also determined that petitioner is liable for an            
          addition to tax under section 6654(a) for failure to make                   
          estimated tax payments for 2001.  A taxpayer has an obligation to           
          pay estimated tax for a particular year only if he has a                    
          “required annual payment” for that year.  Sec. 6654(d).  A                  
          “required annual payment” is equal to the lesser of (1) 90                  
          percent of the tax shown on the individual’s return for that year           
          (or, if no return is filed, 90 percent of his or her tax for such           
          year), or (2) if the individual filed a return for the                      
          immediately preceding taxable year, 100 percent of the tax shown            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next 

Last modified: November 10, 2007