19 August, 2012

Tax Excuses 736 through 758

736. I shouldn't be liable for the business's delinquent taxes because I wasn't really a co-owner of the business. They just listed me as one on account of California's community property laws [Nunez v. Commissioner, T.C. Memo. 2012-121.].

 737. I am an art professor, and my detached retina required me to take leaves of absence from the university for surgery, I had to change my professional artistic endeavours, and during this period I was in an automobile accident and there was a theft at my art studio [Hess v. Her Majesty the Queen, Tax Court of Canada, Docket No. 2011-477(IT)I, 2011 TCC 360 (22 July 2011).].

738. I was taken by surprise when I received the notice of deficiency from the IRS, and payment of that liability would cause me financial hardship because it is a large part of my current net worth [Brashear v. Commissioner, T.C. Memo. 2012-136.].

739. My wife and I were each was diagnosed with attention deficit hyperactivity disorder (ADHD), and I also suffer from bipolar disorder and posttraumatic stress disorder and am a 30% disabled veteran, so we have difficulty concentrating, being organized, and completing tasks (he was able to hold down a job and manage his rental properties) [Hardin v. Commissioner, T.C. Memo. 2012-162.].

740. "Rotundo's defense attorney, Scott Druker, of Garden City, conceded his client is guilty but said the unremitted taxes were reinvested in the restaurant. 'Like so many other restaurants in Manhattan ... the money was just going to keeping the place afloat,' Druker said last night of the FireBird, located on West 46th Street between Eighth and Ninth avenues." [Matthew Chayes, "Restaurateur Serves Time," Newsday, 22 June 2012, p. 30; [case ID: People v. Rotundo, Docket No. SCI-01693-2012, Sup. Ct., N.Y. Co., NY.].].

 741. When the Tax Department calculated the amount of unreported sales taxes my business owed, they should have used a greater pilferage allowance because the business is located in a gang-infested, high-crime area, and the employees stole substantial amounts of money and merchandise when my wife, who has little business experience, was running the business for me while I was incarcerated [Matter of Sharma, California State Board of Equalization, Case ID 267189, 2012 STT 122-8 (25 June 2012).

742. As result of pressure from lenders, I retained third party financial consultants to manage the finances of the restaurant groupof which I was president. During that time I took a backseat role and considered myself to be a follower and not a leader [Gantes v. Dept. of Revenue, No. TC-MD 111146N, 2012 Ore. Tax LEXIS 209 (Oregon Tax Ct., 2012).].

743. My failures to timely file and pay my taxes were due to the cumulative effects of a confluence of personal, professional, and financial difficulties, including my checkbook being stolen, my former business partner's denial of access to records during a protracted lawsuit, a flood and my mother's illness and death [Ditaranto v. Commissioner, T.C. Memo. 2012-205.].

744. I shouldn't be personally liable for the club's delinquent sales and withholding taxes. I only signed the tax returns because I was the last man standing (he was President of the corporation) [Zwiers v. Michigan Dept. of Treasury, Michigan Tax Tribunal, Docket No. 413938 (12 July 2012).].

745. I was abused and dominated by my husband, who threatened to divorce me if I paid the taxes with the other business's funds. I feared being left alone to raise my children (the children were aged 16, 19 and 30 at the time) [Sharona A. Grunspan v. United States, 2012 U.S. Dist. LEXIS 38146, 2012-1 U.S. Tax Cas. (CCH) ¶ 50,264, 109 A.F.T.R.2d (RIA) 1467 (N.D. Ohio 2012).].

746. "The Debtor concedes that he did not make any payments to the IRS for any portion of his federal income tax liability for 2001 or 2002. In a sworn declaration submitted with his response to the IRS's motion for summary judgment, he blames his wife at the time (he is now divorced) for spending the funds that were set aside for the tax payments. He declares that without the funds he 'was unsure what to do about the unfiled tax returns and unpaid liabilities.'" [In re Scott L. Shinn, 2012 Bankr. LEXIS 1218, 2012-1 U.S. Tax Cas. (CCH) ¶ 50,266, 109 A.F.T.R.2d (RIA) 1528 (Bankr., C.D. Ill., 2012).].

747. I used to have a tax preparer do my taxes, but when I started doing them myself I had problems with how to fill out the forms, so I started to procrastinate and missed the filing deadline, and finally decided to wait until the next year. The same thing happened in subsequent years, and I have not yet filed the returns. [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 11-03268 (24 February 2012).].

748. I forgot to file because I was ill with emphasema, and my illness continued and it was several years before I filed my tax returns [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 11-03813 (6 March 2012).].

749. I take care of my family first, and I didn't have money to pay my taxes because of the large amount of expenses of having my son, grandchild and mother-in-law living with me [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-11131 (15 March 2012).].

750. I didn't know that I was still required to file the returns even if I was owed a refund, and I valued not having the hassle of sending in the tax returns more than I valued the refund coming back. [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-08505 (28 March 2012), aff'd 14 June 2012.].

751. "Applicant ... explained that in 2009, he was laid off and his records were in storage and he was not able to access his documents to file his 2006 income tax return. [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-10307 (2 April 2012).].

752. I don't like doing paperwork, so I decided to not file my tax returns [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 11-06622 (12 April 2012).].

753. "A family member was doing this stuff for me and I’ve just discovered recently I need to handle this stuff." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 11-04032 (15 May 2012).].

754. "Applicant conceded that while he was still serving in the Navy he could have had used the Navy Voluntary Income Tax service to file his taxes, but because of his bitter feelings about the IRS together with his emotional issues because of the deaths of his grandparents and his separation from his wife, he simply 'didn’t feel like dealing with the IRS,' and he made a conscious decision not to file Federal tax returns." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-03693 (26 June 2012).].

755.   I cannot file my state income tax because the state income tax form requires information regarding "income" and requires amounts to be reported in "dollars," The form must be signed under penalties of perjury, and the terms "income" and "dollars" are not defined in state or federal law [Missouri Dept. of Revenue, Letter Ruling LR 7124 (20 July 2012).].

 756. I shouldn't be liable for the corporation's use taxes because at the time the company settled with the Department of Treasury I was not an officer and had no tax-specific responsibilities (the taxes were not paid when he was President of the corporation and had signature over the bank account) [Rolinski v. Michigan Dept. of Treasury, Michigan Tax Tribunal, Docket No. 357830 (23 July 2012).].

757. The expenses for my drag racing activities should be allowed as a business deduction because even though drag racing is typically a hobby for amusement, the hours of work and preparation that go into a race are not enjoyable (the Court also didn't allow his excuse that Hurricane Katrina destroyed his financial records; he still had not filed his 2003 and 2004 tax returns by the time Hurricane Katrina struck in August 2005) [Johnson v. Commissioner, T.C. Memo. 2012-231.].

758. Nobody collects the sales taxes on airplanes, so we had to go along to get along [Texas Comptroller of Public Accounts, Hearing no. 25,365, STAR Access No. 9103H1094G09 (20 March 1991).].