Steven Rudolph Kaldi - Page 15
- 14 -
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).
Page: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Last modified: November 10, 2007