571. "We don’t have an in-house bookkeeper who will be working in our office the whole day so they come and do the books, and now we are planning to change our
bookkeeper for another auditor, a bookkeeper who can do it on a more regular basis starting this year ... So, taking that into consideration and I love to pay tax but I hate to pay penalty. If possible, I would like to avoid it. [Hong Kong Inland Revenue Board of Review Case No. D49/08 (12 November 2009).].
572. "Petitioner asserts in a posttrial memorandum that he was 'duped by a charlatan and in essence Robert Gruntz tacitly implied that I should fabricate a log that would show material participation'. Petitioners assert that the liability would be a financial burden for their family and "petition the Court to consider reducing the liability, throwing [themselves] at the mercy of the court." They conclude with: "Just Google Robert Gruntz to see more." [Cunningham v. Commissioner, T.C. Memo. 2009-194.].
573. The president of our company fell and hit her head, which caused complications with her neck and back, and the pain and pain medications impaired her both physically and mentally, so she couldn't file the payroll taxes on time. [Benton Workshop Inc. v. United States, 2009 U.S. Dist. LEXIS 74521 (E.D. Ark., 2009).].
574. I was overwhelmed with the impending eviction of my manufacturing business and with finding a new place to locate the company (The taxpayer, who gained $40,000 from trading the securities markets and had a MBA degree from NYU, also testified that he didn't know that he had to file personal income tax returns) [Walzer v. Commissioner, T.C. Memo. 2009-200.].
575. The State Franchise Tax Board's garnishment of my wages to collect the taxes amounts to a violation of California's Elder Abuse Act [Ramnik Trivedi v. State of California, 2009 Cal. App. Unpub. LEXIS 7105 (No. B210713, Cal.App., 2d Dist., 1 September 2009).].
576. After I closed down my newspaper, I became a truck driver, and was too busy driving the truck out on the road to speak with my accountant [Lee Thomas v. Commissioner, T.C. Summ. Op. 2009-146.].
577. Dad was the only one who ever handled the taxes for the family business. He became terminally ill and debilitated, but out of love, devotion and respect to our family patriarch, we did not want to insult or dishonor him by taking away the leadership functions over the family business he had founded and run for over 30 years [In re Sykes & Sons, Inc., 188 B.R. 507 (Bankr. E.D. Pa. 1995).
578. I shouldn't be penalized for not reporting the IRA distribution because when I did a Google search I couldn't find anything to indicate that the distribution was taxable, and besides, the money was stolen by the woman with whom I invested it (he was a lapsed CPA with a Harvard MBA) [Woodward v. Commissioner, T.C. Summ. Op. 2009-150.].
579. I was working to build his business at an investment banking firm. There was strife at the firm because of internal politicking, a dysfunctional board of directors, the shenanigans of management, negative repercussions from its mergers, and the effects of its weak capital structure and its releasing of stock before payment that caused it to implode. Also, the September 2001 terrorist attacks had a negative impact on the financial services industry. My father had a heart attack and subsequently died. I was just bumping along, but decided to grind it out because I believed things would improve. I found new employment late in 2002, but my income was reduced by 40 percent. I not realize that I was depressed. While I attempted to get back into my routine in 2004, I did not make estimated tax payments. [Grunsted v. Commissioner, T.C. Summ. Op. 2009-159.].
580. I shouldn't be liable for the tax deficiencies attributable to my wife's restaurant business because I am an IRS employee and if I am found liable I could lose my employment under the Internal Revenue Service Restructuring and Reform Act of 1998 [Owen E. Smith v. Commissioner, T.C. Memo. 2009-237.].
581. I shouldn't be liable for Paradym's withholding taxes because I wasn't really the owner; the true owner was Back Porch Workout (which was solely owned by Petitioner and his family) and you have to try to collect from the other company first. … "Although petitioner offered a Form 1065, U.S. Return of Partnership Income, for Paradym for tax year 2005, that document is not credible. Attached to the Form 1065 were two Schedules K1, Partner's Share of Income, Deductions, Credits, etc. The first Schedule K-1 was issued to Back Porch Workout and indicated that Back Porch Workout owned a 100-percent ownership interest in Paradym. The second Schedule K-1 was issued to Anyone with an address listed as None in Kalamazoo, Michigan. The purported Schedule K-1 showed a zero-percent ownership interest in Paradym. Not only was the Form 1065 created in 2007 after [the IRS] had begun collection proceedings, but petitioner testified that the second Schedule K-1 was fabricated because it was the only way to process a partnership return for Paradym using petitioner's and Mr. Idahosa's tax return preparation software." (He was a former IRS Revenue Agent) [Comensoli v. Commissioner, T.C. Memo. 2009-242.].
582. We had an A+ lifestyle before mid-1987, but it became an F lifestyle after the Savings and Loan Association we bought ran into problems. We could no longer afford a housekeeper or a landscaping company after 1992, and could no longer afford new furniture and had to accept used furniture handed down from Mom. [Felt v. Commissioner, T.C. Memo. 2009-245.].
583. I put off paying my taxes and never did so because I was irresponsible [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-11571 (29 September 2009).].
584. I claimed exemption from withholding and did not file or pay my income taxes I knew it was wrong, but decided to continue because the IRS was not paying attention and did not pursue me on it. [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-00505 (23 October 2009).].
585. "Long provided three inconsistent reasons why he did not pay his 1999, 2000, and 2001 personal federal income taxes. First, Long stated that he was aware that he did not pay his taxes, but that he had no money to do so. In his responses to the United States' interrogatories, Long stated that all his money earned in the years at issue 'went to gambling, alcohol, and drugs. I lost all the money earned and had no money to pay the taxes. I hoped [I] could win money to pay the taxes, but I lost all the money.' At trial, however, Long testified that he was not aware until 2005 that he did not pay his taxes, and that he thought [his accountant] was filing his returns and paying his taxes for him. Finally, Long also testified at trial - inconsistently -- that he thought the taxes for at least 2001 were being paid out of the proceeds of the sale of his McDonald's franchise. [transcript citations omitted]" [In re Robert Michael Long, 2009 Bankr. LEXIS 3373 (Bankr., M.D. Fla., 2009).].
586. My marriage was unraveling, and it was in the best interests of my spouse and myself to delay filing so that we could try to salvage the marriage and file joint tax returns instead of each of us filing separately (he was disbarred from practice before the IRS for failing to file his own income tax returns for 2000, 2001, 2002, 2003 and 2005) [Office of Professional Responsibility v. Alex J. Llorente, U.S. Treasury, Disciplinary Appeal, Complaint No. 2008-03 (10 April 2009).
587. I failed to report my capital gains income on my tax returns because buying and selling stocks are my favorite hobby but I never understood the meaning of capital gains or losses, so I just ignored it [Ignatzi v. Canada, [2003] T.C.J. No. 91, 2003 TCC 60, [2003] 3 C.T.C. 2119 (Tax Ct. of Canada, 2003).].
588. I should get innocent spouse relief from my taxes because my ex-wife took money out of my bank account to pay the IRS for her own share of the overdue taxes [Maluda v. Commissioner, T.C. Memo. 2009-281.].
589. I shouldn't be liable for the taxes of my single member limited liability company because the LLC was leased to another party who was permitted to use my LLC's taxpayer identification number [Leedreau LLC v. Commissioner, T.C. Summ. Op. 2009-195.].
590. We shouldn't have to pay the grower's assessment to the California Table Grape Commission because the Commission's advertisements lead the public to believe that all table grapes are equal, and after we pay the assessment we don't have enough money to advertise to the public that our grapes our superior to the others [Delano Farms Co. v. California Table Grape Commission, 586 F.3d 1219 (9th Cir. 2009).].
27 January, 2010
Tax Excuses 562 - 570
562. I don't have to follow the instructions on the tax return to substantiate my church contributions [Guerrero v. Commissioner, T.C. Memo. 2009-164.].
563. My client did not file its information returns with the IRS on time because the bookkeeper they hired to replace my ex-wife, who was later fired for stealing from the organization, refused delivery of 20 boxes of records, so when the boxes were returned they were left on the front porch while we were away and when we got home the boxes were waterlogged and musty, so my ex-wife threw them out. [American Friends of Yeshivat Ohr Yerushalayim, Inc. v. United States, 2009 U.S. Dist. LEXIS 47986, N.Y.L.J., 6/15/2009, p. 29, col. 3 (E.D.N.Y. 2009), magistrate's findings adopted 2009 U.S. Dist. LEXIS 65434, 104 A.F.T.R.2d (RIA) 5747 (E.D.N.Y. 2009).].
564. I may have been complicit in the company's dishonest conduct, but the other directors of the company, who were also complicit, are trying to shift all of the blame to me [Gary Giles v. Her Majesty's Revenue & Customs (No. TC00077, [2009 UKFTT 109 (TC), 1st Tier Tribunal, Tax Centre, 18 May 2009).].
565. "When asked at trial whether he had reasonable cause for not filing, petitioner replied: 'Not within the confines of this court, no.'" [McGowan v. Commissioner, T.C. Memo. 2009-172.].
566. I shouldn't have to pay taxes on my cigarettes because my husband is in the Army [Lucille Bousquet v. Commissioner of Revenue, Massachusetts Appellate Tax Board, Docket No. C293950 (9 July 2009).].
567. "The taxpayers stated they hoped the Tax Commission was not making a claim against them as living souls or because they had an abode in Idaho since that would be a form of slavery, being forced to pay to live in Idaho" ) [Matter of Anonymous, Dkt. No. 21380, Idaho State Tax Comm. (19 February 2009).].
568. I experienced a significant increase in unforeseeable and extraordinary expenses from trying to reunite with my estranged children from my first marriage; I experienced an unexpected decrease in income from the March 2000 market downturn, which was further aggravated by the events of September 11, 2001, a capital call at my law firm, and a lack of work in my legal specialty. I believed that, because I did not have the money to pay my taxes, I could not file my returns [Matter of Gerald A. Eppner, 62 A.D.3d 151, 874 N.Y.S.2d 435 (App. Div., 1st Dept. 2009).].
569. The lateness penalty for not timely purchasing and affixing the amusement device tax decal ($50) should not be greater than the fee for the decal itself ($42) [Matter of Anonymous, Dkt. No. 21409, Idaho State Tax Comm. (13 April 2009).].
570. My conviction for not filing my tax returns should be vacated because the threshold amount for filing is adjusted annually based upon the Consumer Price Index, which is promulgated by the Department of Labor and not the IRS (he was a radiologist whose gross income for the years at issue exceeded $1.5 million) [Charles Thomas Clayton v. Commissioner, 506 F.3d 405 (5th Cir. 2007), cert. denied ___ U.S. ___, 128 S. Ct. 1874, 170 L. Ed. 2d 745 (2008).].
563. My client did not file its information returns with the IRS on time because the bookkeeper they hired to replace my ex-wife, who was later fired for stealing from the organization, refused delivery of 20 boxes of records, so when the boxes were returned they were left on the front porch while we were away and when we got home the boxes were waterlogged and musty, so my ex-wife threw them out. [American Friends of Yeshivat Ohr Yerushalayim, Inc. v. United States, 2009 U.S. Dist. LEXIS 47986, N.Y.L.J., 6/15/2009, p. 29, col. 3 (E.D.N.Y. 2009), magistrate's findings adopted 2009 U.S. Dist. LEXIS 65434, 104 A.F.T.R.2d (RIA) 5747 (E.D.N.Y. 2009).].
564. I may have been complicit in the company's dishonest conduct, but the other directors of the company, who were also complicit, are trying to shift all of the blame to me [Gary Giles v. Her Majesty's Revenue & Customs (No. TC00077, [2009 UKFTT 109 (TC), 1st Tier Tribunal, Tax Centre, 18 May 2009).].
565. "When asked at trial whether he had reasonable cause for not filing, petitioner replied: 'Not within the confines of this court, no.'" [McGowan v. Commissioner, T.C. Memo. 2009-172.].
566. I shouldn't have to pay taxes on my cigarettes because my husband is in the Army [Lucille Bousquet v. Commissioner of Revenue, Massachusetts Appellate Tax Board, Docket No. C293950 (9 July 2009).].
567. "The taxpayers stated they hoped the Tax Commission was not making a claim against them as living souls or because they had an abode in Idaho since that would be a form of slavery, being forced to pay to live in Idaho" ) [Matter of Anonymous, Dkt. No. 21380, Idaho State Tax Comm. (19 February 2009).].
568. I experienced a significant increase in unforeseeable and extraordinary expenses from trying to reunite with my estranged children from my first marriage; I experienced an unexpected decrease in income from the March 2000 market downturn, which was further aggravated by the events of September 11, 2001, a capital call at my law firm, and a lack of work in my legal specialty. I believed that, because I did not have the money to pay my taxes, I could not file my returns [Matter of Gerald A. Eppner, 62 A.D.3d 151, 874 N.Y.S.2d 435 (App. Div., 1st Dept. 2009).].
569. The lateness penalty for not timely purchasing and affixing the amusement device tax decal ($50) should not be greater than the fee for the decal itself ($42) [Matter of Anonymous, Dkt. No. 21409, Idaho State Tax Comm. (13 April 2009).].
570. My conviction for not filing my tax returns should be vacated because the threshold amount for filing is adjusted annually based upon the Consumer Price Index, which is promulgated by the Department of Labor and not the IRS (he was a radiologist whose gross income for the years at issue exceeded $1.5 million) [Charles Thomas Clayton v. Commissioner, 506 F.3d 405 (5th Cir. 2007), cert. denied ___ U.S. ___, 128 S. Ct. 1874, 170 L. Ed. 2d 745 (2008).].
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