Reginald James Smith - Page 9

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          place to stay.  Petitioner also fell behind on paying bills and             
          student loans.  Although petitioner eventually found a new job,             
          it paid close to minimum wage and provided no health benefits.              
          Petitioner sustained at least one injury from an accident while             
          he was uninsured, and he had to pay the related expenses out of             
               The record is unclear as to whether petitioner received the            
          Form 1099-MISC, Miscellaneous Income, issued by Onyx.3  Given the           
          circumstances described herein, it seems unlikely that petitioner           
          would have appreciated the significance of the Form 1099-MISC               
          even if he did receive it, even though failure to receive a Form            
          1099-MISC does not necessarily constitute reasonable cause for              
          failure to report income.  See Goode v. Commissioner, T.C. Memo.            
               We find that petitioner’s termination from employment, his             
          eviction resulting in temporary homelessness, his health issues,            
          and the technical nature of the law as to the exclusion of income           
          under section 104 are factors that weigh in his favor.  Viewing             
          all the facts and circumstances, including the experience,                  
          knowledge, and education of the taxpayer, we conclude that                  
          petitioner has demonstrated reasonable cause for failing to                 

               3 The parties stipulated that petitioner received the                  
          settlement proceeds, and that Onyx issued a Form 1099-MISC, which           
          was submitted as an exhibit.  The record does not state that                
          petitioner actually received the Form 1099-MISC.                            

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