DocketNumber: Docket No. 21315-80.
Citation Numbers: 45 T.C.M. 602, 1983 Tax Ct. Memo LEXIS 732, 1983 T.C. Memo. 54
Filed Date: 1/31/1983
Status: Non-Precedential
Modified Date: 11/20/2020
MEMORANDUM FINDINGS OF FACT AND OPINION
DAWSON,
Additions to Tax | ||||
Year | Deficiency | Sec. 6651(a) | Sec. 6653(a) | Sec. 6654 1 |
1976 | $4,200.03 | $1,050.01 | $210.00 | $156.42 |
1977 | 4,092.30 | 1,023.08 | 204.62 | 145.63 |
The issues for decision are (1) whether, in the absence of adequate records, respondent correctly determined petitioner's taxable income for 1976 and 1977 by the bank deposit method; (2) whether petitioner, relying on a general
No facts have been stipulated. Consequently, the pertinent facts, as contained in this record and the pleadings, are summarized below.
Petitioner resided in Beach, North Dakota, at the time he filed his petition in this case.
During the years 1976 and 1977 the petitioner was a self-employed custom operator who performed services for farmers in the Beach, North Dakota, area. In those years he maintained a bank account (No. 5467-4) at the Farmers and Merchants Bank in Beach to which he made periodic deposits totaling $17,224.76 in 1976 and $15,801.68 in 1977.
On April 15, 1977, petitioner1983 Tax Ct. Memo LEXIS 732">*735 filed with the Internal Revenue Service at Ogden, Utah, a Form 1040 for 1976 on which he reported no income, credits, deductions or tax liability. On each pertinent line of the Form 1040 appears the word "object." Attached thereto are 47 pages of materials raising various constitutional objections. By a subsequent letter dated April 14, 1978, petitioner requested that the Form 1040 be amended by deleting the 47 pages and substituting therefor a 12 page memorandum attached to his Form 1040 for the year 1977.
On or about April 15, 1978, petitioner filed with the Internal Revenue Service at Ogden, Utah, a Form 1040 for 1977 on which he reported no income credits, deductions or tax liability. On each pertinent line of the form appears the word "object" and on page 2 thereof appears the following statement: "The entry (object) indicates that I assert my privilege to the
The two Forms 1040 for 1976 and 1977 were not accepted by the Internal Revenue Service as valid Federal income tax returns.
Since the petitioner either failed to keep adequate records of his income and expenses or1983 Tax Ct. Memo LEXIS 732">*736 refused to make them available to respondent's agents, the taxable income of petitioner was determined by the bank deposit method. 2 After allowing for nontaxable deposits and cash withheld, respondent determined that the petitioner had taxable income of $14,949.76 in 1976 and $14,712.68 in 1977. Respondent allowed a standard deduction and a zero bracket amount, as the case may be, of $1,400 and a personal exemption of $750.
1983 Tax Ct. Memo LEXIS 732">*737 On April 19, 1982, the Chief Judge denied petitioner's request for a grant of immunity because this Court has no authority to provide petitioner with immunity in this proceeding. See
There is no evidence herein that petitioner's
We reject his
Petitioner urges that his actions were based upon his belief that any rules or regulations requiring him to make any statement which he felt was self-incriminating would undermine1983 Tax Ct. Memo LEXIS 732">*739 the interpretation given to the
Petitioner has the burden of proving that respondent's determination with respect to the deficiencies is wrong.
1983 Tax Ct. Memo LEXIS 732">*740 In his brief the petitioner has advanced other arguments which lack merit.Petitioner was a "person" required by section 6012(a) to file Federal income tax returns for 1976 and 1977. See section 7701(a)(1) and (14). Respondent determined deficiencies and issued a valid notice pursuant to sections 6211 and 6212, and the petitioner filed a timely petition invoking the jurisdiction of this Court. Section 6213;
The other issues to be decided are whether the petitioner is liable for additions to tax under sections 6651(a), 6653(a), and 6654. Section 6651(a) provides for an addition to tax when a return is not timely filed, 1983 Tax Ct. Memo LEXIS 732">*741 unless the failure to do so is shown to be due to reasonable cause; section 6653(a) provides for an addition to tax where an underpayment of tax is due to negligence or intentional disregard of rules and regulations; and section 6654 provides for an addition to tax for underpayments of estimated tax. Since the respondent determined that the petitioner is liable for such additions to tax, the petitioner must carry the burden of proving that he is not so liable. See
Petitioner introduced no evidence to justify his failure to file returns for 1976 and 1977. In order for a document to constitute a valid return it must contain sufficient information for the Commissioner to compute and assess the liability with respect to a particular tax of a taxpayer.
It is clear from this record that the Forms 1040 filed by the petitioner fall far short of constituting returns. Furthermore, he has shown no "bona fide misunderstanding as to his liability for the tax, [or] as to his duty to make a return."
Petitioner also failed to show that his underpayments of taxes were not due to negligence or intentional disregard of rules and regulations.
1. All section references are to the Internal Revenue Code of 1954, as amended and in effect during the years in issue, unless otherwise indicated.↩
2. Here respondent's method of determining the petitioner's income is reasonable. Taxpayers are required by section 6001 to keep records of their income sufficient to show whether they are liable for any tax. If they fail to keep the required records, or the records kept do not clearly reflect income, the Commissioner is authorized by section 446 to compute income in accordance with such method as in his opinion does clearly reflect income.
3. Petitioner's assertion that respondent must bear the burden of proof is incorrect.
United States v. John R. Morse, and Alice Morse , 491 F.2d 149 ( 1974 )
leo-sanders-and-jessie-h-sanders-v-commissioner-of-internal-revenue-leo , 225 F.2d 629 ( 1955 )
United States v. Edelson, Joseph , 604 F.2d 232 ( 1979 )
Vincent Marcello, Sadie Marcello v. Commissioner of ... , 380 F.2d 494 ( 1967 )
Emma R. Dorl v. Commissioner of Internal Revenue , 507 F.2d 406 ( 1974 )
United States v. Donald D. Johnson , 577 F.2d 1304 ( 1978 )
William H. And Avilda L. Edwards v. Commissioner of ... , 680 F.2d 1268 ( 1982 )
Commissioner v. Lane-Wells Co. , 64 S. Ct. 511 ( 1944 )
Raymond J. Ryan and Helen Ryan v. Commissioner of Internal ... , 568 F.2d 531 ( 1977 )
United States v. Nathan Stein , 437 F.2d 775 ( 1971 )
United States v. Jerome Daly , 481 F.2d 28 ( 1973 )
United States v. David N. Moore , 627 F.2d 830 ( 1980 )
Gleckman v. United States , 80 F.2d 394 ( 1935 )
Brushaber v. Union Pacific Railroad , 36 S. Ct. 236 ( 1916 )
Florsheim Brothers Drygoods Co. v. United States , 50 S. Ct. 215 ( 1930 )
Welch v. Helvering , 54 S. Ct. 8 ( 1933 )
United States v. Bisceglia , 95 S. Ct. 915 ( 1975 )
Automobile Club of Mich. v. Commissioner , 77 S. Ct. 707 ( 1957 )