David and Monika Zisskind - Page 10




                                       - 10 -                                         
               Petitioner knew that he would owe tax as a result of the               
          distribution of profits from Mercer, but petitioners failed to              
          make estimated tax payments and paid only $500 when they filed              
          their return.  Nevertheless, petitioners argue they had                     
          reasonable cause for their failure to timely pay their full tax             
          liability because they made reasonable efforts to conserve                  
          sufficient assets in marketable form to satisfy their tax                   
          liability but were nevertheless unable to pay the tax when it               
          became due.  Petitioners assert they invested the profits                   
          received from Mercer with Merrill Lynch “into stocks like Intel             
          and high tech stocks and things that were safe”.  However,                  
          petitioners assert that “Merrill Lynch lost it”, leaving                    
          petitioners unable to satisfy their tax obligations.  Petitioner            
          testified that he believed he was making a conservative                     
          investment and he “thought it was the same thing as a bank.”                
               While petitioners provided Ms. Russo with bank statements to           
          support their contention that they were unable to pay their                 
          outstanding tax liability, they did not provide Ms. Russo with              
          information regarding their investment with Merrill Lynch.  Other           
          than petitioner’s testimony, there is no evidence in the record             
          concerning petitioners’ investment with Merrill Lynch, or that              
          such an investment was even made.  Other than stating they                  
          invested in “stocks like Intel and high tech stocks”, petitioners           
          have not specifically identified what stocks they invested in.              







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next 

Last modified: November 10, 2007