-10-
into account all the pertinent facts and circumstances, including
the taxpayer’s efforts to assess his or her proper tax liability
and the knowledge and experience of the taxpayer. Sec. 1.6664-
4(b)(1), Income Tax Regs. The taxpayer bears the burden of proof
with respect to reasonable cause. Higbee v. Commissioner, supra
at 446.
Petitioner failed to assert any arguments that reasonable
cause existed. Petitioner focused his arguments on why the
distribution should not be treated as income, should not be
subject to the additional tax, as well as tax-protester type
arguments that wages are not income. Specifically, petitioner
did not argue and did not introduce any evidence that he acted
with reasonable cause or in good faith with respect to the
underpayment for 2004.5
After considering all of the facts and circumstances, we
find that petitioner has failed to establish that he had
reasonable cause and acted in good faith with respect to the
underpayment. Accordingly, we sustain respondent’s determination
that petitioner is liable for the accuracy-related penalty for
2004.
5Petitioner states that the Code is difficult for the IRS to
understand, relying on a case involving the recovery of
attorney’s fees. McKee v. Commissioner, T.C. Memo. 2004-115, as
supplemented T.C. Memo. 2004-169, revd. 209 Fed. Appx. 691 (9th
Cir. 2006). There is no uncertainty about petitioner’s legal
obligations here. See, e.g., Pessin v. Commissioner, 59 T.C.
473, 489 (1972); Rosanova v. Commissioner, T.C. Memo. 1985-306;
Grant v. Commissioner, T.C. Memo. 1980-242.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: November 10, 2007