Tax News

CCH (cch.taxgroup.com) reports:

An IRS Appeals officer correctly upheld the filing of a notice of tax lien against a tax attorney and his wife who filed their joint return more than two years after the due date and made no payment with the filing. Penalties for failure to timely file and for failure to pay were also imposed. The attorney did not substantiate his argument that the IRS had not credited the couple with two substantial payments. Furthermore, in some of their ten prior tax years of untimely filing, the IRS had abated the couple's penalties and interest; the couple contended that if this abatement had been applied consistently over the ten prior tax years, they would have had an overpayment credit to offset against their current tax liability. However, the couple did not present credible evidence regarding the appropriateness of any further abatement for a prior year, and an abatement in a prior year does not establish entitlement to an abatement in any other year. Finally, the couple's argument that they were not liable for any penalties because the husband's criminal investigation and subsequent incarceration were reasonable cause for the untimely filing and the failure to pay was rejected. Incarceration alone does not constitute reasonable cause for purposes of the penalties.
M.E. Kohn, TC Memo 2009-117, Dec. 57,833(M)
 
Other References:
 
Code Sec. 6330
 
CCH Reference - 2009FED ¶38,184.62
 
Code Sec. 6651
 
CCH Reference - 2009FED ¶39,475.56
 
Tax Research Consultant
 
CCH Reference - TRC IRS: 45,102
CCH Reference - TRC PENALTY: 3,050