Steven Rudolph Kaldi - Page 15

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          to pay the tax or would suffer an undue hardship if he paid on              
          the due date.  Sec. 301.6651-1(c), Proced. & Admin. Regs.  “Undue           
          hardship” means more than mere inconvenience to the taxpayer.               
          See sec. 1.6161-1(b), Income Tax Regs.                                      
               Petitioner mailed in $5,000 of the almost $14,000 due at the           
          same time he late-filed his 2002 Federal income tax return on               
          July 14, 2004.  He argues that he had reasonable cause for not              
          paying the full amount of tax due in a timely manner.  The                  
          principal thrust of his argument seems to be that he regretted              
          following his accountant’s advice to report the $25,000 given to            
          Vestin Mortgage as an early withdrawal from an IRA, and he                  
          believed he was showing “good faith” by sending in any money at             
          all until he had the opportunity to dispute the sum’s inclusion.            
          He argued that he thought settling the matter would take only a             
          “reasonable period of time, 90 days, six months”.  Petitioner did           
          not, however, argue any set of facts or circumstances that would            
          lead the Court to find that he exercised ordinary business care             
          and prudence in providing for the timely payment of his self-               
          reported tax liability or that he would have suffered undue                 
          hardship if he had paid the tax in full on its actual due date,             
          April 15, 2003.  See secs. 6072(a), 6151(a), 7503; sec. 301.6651-           
          1(c), Proced. & Admin. Regs.                                                
               Consequently, petitioner is liable for an addition to tax              
          under section 6651(a)(2).                                                   

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