- 8 -
bulk of the amount shown as tax on the return for each of the
years in issue remained unpaid as of the respective due dates.
Petitioner contends that he did not remit full payments for
the years in issue because of hardship due to his divorce and
subsequent loss of employment. Petitioner has not shown that he
would have suffered substantial financial loss if he had paid his
taxes by the due date. Moreover, adverse economic conditions do
not necessarily constitute reasonable cause because almost every
nonwillful failure to pay taxes is the result of financial
difficulties. See Estate of Hartsell v. Commissioner, T.C. Memo.
2004-211; Wolfe v. United States, 612 F. Supp. 605, 607-608 (D.
Mont. 1985), affd. on other grounds 798 F.2d 1241 (9th Cir.
1986).
The Court therefore finds that petitioner failed to
demonstrate that his failure to timely pay the taxes shown on the
returns for the years in issue was due to reasonable cause and
not willful neglect. See sec. 301.6651-1(c), Proced. & Admin.
Regs.; sec. 1.6161-1(b), Income Tax Regs. Accordingly,
petitioner is liable for the additions to tax under section
6651(a)(2) for the years in issue.
Additions to Tax Under Section 6654
Section 6654 imposes an addition to tax for failure to make
timely and sufficient payments for estimated taxes. In order for
respondent to satisfy his burden of production under section
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011