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).].
19 August, 2012
12 April, 2012
Tax Excuses 723 through 735
723. The IRS notice of deficiency sent to me from the IRS's New York office is invalid because the New York office has no authority over me because I live in Oklahoma and am accountable only to the IRS office in Oklahoma." [Palmer v. Commissioner, 2012-34.].
724. Our accountant missed all the deadlines because she had to serve a very long prison sentence for murdering her husband, and the person in her office who took over their account made a slew of mistakes [Esrig v. Commissioner [T.C. Memo. 2012-38.].
725. The estate taxes were paid late because the emotional difficulties from death of both of my parents in close proximity in time, the unprecedented credit crisis, and my accountant's failure to advise me of the monthly payment option [Giovanna Cusenza Rossman v. United States, (No. 1:11-cv-00139, Ct. of Federal Claims, 13 February 2012).].
726. I was not a responsible person for my company's withholding taxes because the Sarbanes-Oxley Act required the internal audit function and the tax function to be handled by different accounting firms, and my direct interaction with the company's operating finance employees was discouraged if not prohibited (he was CEO and Chairman of the Board) [Matter of David Steinberg, N.Y. State Tax Tribunal, Decision DTA No. 822971 (23 February 2012).].
727. We should be able to take the first time homebuyer tax credit on the house we purchased for our son because the television commercial we saw did not clarify that the new home being purchased had to be used as a primary residence in order to qualify for the tax credit [Ralph Grosso et ux. v. United States, 2011 U.S. Dist. LEXIS 137842, 108 A.F.T.R.2d (RIA) 7354( E.D. Pa., 2011) .].
728. I didn't intend to evade my taxes to the IRS when I dealt in cash under the table; my intention was to evade other creditors who wanted to attach my bank account [In re Bryen, 2011 U.S. App. LEXIS 22349, 2011-2 U.S.T.C. (CCH) ¶ 50,703, 108 A.F.T.R.2d (RIA) 7013, n. 3 (3rd Cir., 2011).].
729. I had marital problems, was depressed, one of my employees took out a fraudulent credit card in my business's name, and I had an Oxycontin dependency following my back surgeries following a golf injury [Pleconis v. Internal Revenue Service, 108 A.F.T.R.2d (RIA) 5704, 2011 U.S. Dist. LEXIS 88471 (D. N.J., 10 August 2011).].
730. I am a school guidance counselor, so the IRS's efforts to collect the taxes I owe would be fruitless [David P. Wulderk v. Commissioner, 2011 TNT 242-22 (U.S. Tax. Court, Docket No. 24398-10 L,Order, 15 December 2011).].
731. The sales tax on the popcorn and nachos and other snacks we sell at movie theaters should only be subject to the 1% reduced rate sales tax instead of the general 4% rate because people can buy those foods with federal food stamps [Wehrenberg, Inc. v. Director of Revenue, 352 S.W.3d 366 (Mo. 2011).].
732. "Aldridge also testified that he did not hide his assets to avert IRS collection, but rather to keep them from his wife." [United States v. Michael Aldridge, 2012 U.S. App. LEXIS 448, 2012 FED App. 0012N (6th Cir.), 109 A.F.T.R.2d (RIA) 422, 2012 TNT 6-12 (6th Cir. 2012).].
733. I didn't file my tax returns because I hadn't filed my tax returns in prior years and I thought that I couldn't file a tax return until my previous tax returns were filed [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-04136 (30 January 2012).].
734. "Applicant claims his failure to file his Federal and state income tax returns and pay his debts was due to his back injury in 2004 and related subsequent business problems" (He had filed neither federal nor state tax returns for tax years 2004 through 2010) [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-09099 (9 February 2012).].
735. I kept my business records in a rented airplane hangar, but that became too expensive so I notified the IRS that I would discard my records when the lease ran out, and invited the IRS to visit the hangar to copy my records. My lack of tax records is the IRS's fault because they should have copied the records or else warned me that I would need them before I discarded them [F. Lee Bailey v. Commissioner, T.C. Memo. 2012-96.].
724. Our accountant missed all the deadlines because she had to serve a very long prison sentence for murdering her husband, and the person in her office who took over their account made a slew of mistakes [Esrig v. Commissioner [T.C. Memo. 2012-38.].
725. The estate taxes were paid late because the emotional difficulties from death of both of my parents in close proximity in time, the unprecedented credit crisis, and my accountant's failure to advise me of the monthly payment option [Giovanna Cusenza Rossman v. United States, (No. 1:11-cv-00139, Ct. of Federal Claims, 13 February 2012).].
726. I was not a responsible person for my company's withholding taxes because the Sarbanes-Oxley Act required the internal audit function and the tax function to be handled by different accounting firms, and my direct interaction with the company's operating finance employees was discouraged if not prohibited (he was CEO and Chairman of the Board) [Matter of David Steinberg, N.Y. State Tax Tribunal, Decision DTA No. 822971 (23 February 2012).].
727. We should be able to take the first time homebuyer tax credit on the house we purchased for our son because the television commercial we saw did not clarify that the new home being purchased had to be used as a primary residence in order to qualify for the tax credit [Ralph Grosso et ux. v. United States, 2011 U.S. Dist. LEXIS 137842, 108 A.F.T.R.2d (RIA) 7354( E.D. Pa., 2011) .].
728. I didn't intend to evade my taxes to the IRS when I dealt in cash under the table; my intention was to evade other creditors who wanted to attach my bank account [In re Bryen, 2011 U.S. App. LEXIS 22349, 2011-2 U.S.T.C. (CCH) ¶ 50,703, 108 A.F.T.R.2d (RIA) 7013, n. 3 (3rd Cir., 2011).].
729. I had marital problems, was depressed, one of my employees took out a fraudulent credit card in my business's name, and I had an Oxycontin dependency following my back surgeries following a golf injury [Pleconis v. Internal Revenue Service, 108 A.F.T.R.2d (RIA) 5704, 2011 U.S. Dist. LEXIS 88471 (D. N.J., 10 August 2011).].
730. I am a school guidance counselor, so the IRS's efforts to collect the taxes I owe would be fruitless [David P. Wulderk v. Commissioner, 2011 TNT 242-22 (U.S. Tax. Court, Docket No. 24398-10 L,Order, 15 December 2011).].
731. The sales tax on the popcorn and nachos and other snacks we sell at movie theaters should only be subject to the 1% reduced rate sales tax instead of the general 4% rate because people can buy those foods with federal food stamps [Wehrenberg, Inc. v. Director of Revenue, 352 S.W.3d 366 (Mo. 2011).].
732. "Aldridge also testified that he did not hide his assets to avert IRS collection, but rather to keep them from his wife." [United States v. Michael Aldridge, 2012 U.S. App. LEXIS 448, 2012 FED App. 0012N (6th Cir.), 109 A.F.T.R.2d (RIA) 422, 2012 TNT 6-12 (6th Cir. 2012).].
733. I didn't file my tax returns because I hadn't filed my tax returns in prior years and I thought that I couldn't file a tax return until my previous tax returns were filed [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-04136 (30 January 2012).].
734. "Applicant claims his failure to file his Federal and state income tax returns and pay his debts was due to his back injury in 2004 and related subsequent business problems" (He had filed neither federal nor state tax returns for tax years 2004 through 2010) [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-09099 (9 February 2012).].
735. I kept my business records in a rented airplane hangar, but that became too expensive so I notified the IRS that I would discard my records when the lease ran out, and invited the IRS to visit the hangar to copy my records. My lack of tax records is the IRS's fault because they should have copied the records or else warned me that I would need them before I discarded them [F. Lee Bailey v. Commissioner, T.C. Memo. 2012-96.].
12 January, 2012
Tax Excuses 696 through 722:
696. The money I embezzled from my employer was deposited into the account of my side business, so it shouldn't be taxed as income to me personally, but should be a non-taxable capital contribution to my side business [Wood v. Commissioner, T.C. Memo. 2011-190.].
697. I was having problems with my marriage, so there was no point in paying myself large amounts that would be matrimonial income (he had diverted most of the income from his medical practice to a sham trust to avoid the income tax) [Penny v. Commissioner of Inland Revenue, [2011] NZSC 95 (New Zealand Supreme Ct., 2011).].
698. "He was going through a contentious divorce. His wife was living in their retirement home in a different state when she cleaned out all their bank accounts, maxed out their credit cards, hired a divorce attorney, and filed for divorce. He claimed he did not have access to his tax records and personal documents until 2007 (he still hadn't filed his 2006, 2007, 2008 or 2009 tax returns as of 2010) [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-01183 (30 June 2011).].
699. The Revenue Department examiner who conducted the Sales Tax audit lacked adequate qualifications and experience (the Examiner had been employed by the Department for 5 years, held a business degree with a concentration in accounting, and had received training in auditing sales taxes). [Quick N EZ, Inc. v. Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. S. 10-245 (23 August 2011).].
700. We lost equipment in the September 11, 2001 attack on the World Trade Center, and incurred significantly higher insurance rates which hurt our business. I had to sell my houseboat and take out a second mortgage on my Colorado ranch to give additional funding to the business [Concert Staging Services Inc. v. Commissioner, T.C. Memo. 2011-231.].
701. I presumed that my accountant had requested an extension until October 15 2006 to file our return, so the penalties should only be calculated beginning October 16 2006 (he didn’t file his 2004 or 2005 tax returns until January 12, 2007, and didn’t file his 2003 or 2002 tax returns at all) [Greenwald v. Commissioner, T.C. Memo. 2011-239.].
702. Our comptroller died, a former employee had embezzled money and our customer list was stolen [In re Sunrooms Plus, Inc., New Mexico Taxation & Revenue Dept., No. 11-20 (9 September 2011).].
703. I shouldn’t have to pay the tax delinquencies because the Department of Revenue did not make a formal assessment until 6 years after they completed their special investigation (he was a former Wisconsin State Senator who pleaded guilty and was imprisoned on federal charges for accepting kickbacks) [ George v. Wisconsin Department of Revenue, Wisconsin Tax Appeals Commission, Docket No. 08-I-57 & 08-I-60 (23 September 2011).].
704. My 72-month sentence for aiding and abetting the preparation of false tax returns should be reduced because I am an immigrant supporting a large family, I suffered traumatic experiences during the Somali civil war, and Mr. Mohamed, who taught me how to fraudulently request the fuel tax credit on the tax returns I prepared, only got a sentence of 18 to 24 months (he prepared more than 1,000 fraudulent tax returns, and he jumped bail before trial and absconded to Canada) [United States v. Yahya Muhumed Shakal, 644 F.3d 642 (8th Cir. 2011).].
705. The jury shouldn't have been given the evidence that I failed to file my personal tax returns from 2002 to 2007 because it simply invited the jury to punish the bad man because of his character (he was a tax return preparer who was convicted of defrauding the government and aiding and abetting in the preparation of false tax returns) [United States v. Maxwell, 643 F.3d 1096 (8th Cir. 2011).].
706. I shouldn't be responsible for the withholding taxes because I wasn't really the manager; my job was to babysit the owner's son and to control his penchant for excessive expenditures and financial mismanagement [United States v. Cooke, 2011 U.S. Dist. LEXIS 35227, 2011-1 U.S.T.C. (CCH) ¶ 50,333, 107 A.F.T.R.2d (RIA) 1587 (S.D. Ind. 2011).].
707. Our lap dancers' services for our patrons were live dramatic choreographic performances and therefore exempt from the sales tax [677 New Loudon Corp, v, Tax Appeals Tribunal, 85 A.D.3d 1341, 925 N.Y.S.2d 686 (3d Dept. 2011).].
708. After the September 11, 2001 terrorist attacks, Congress enacted the Air Transportation Safety & System Stabilization Act, which delayed the due date for payment of the transportation excise taxes collected from my airline's passengers. We therefore used the funds as working capital, and shouldn't have to pay the taxes to the government [Conway v. United States, 647 F.3d 228 (5th Cir. 2011).].
709. My husband was unemployed during his substance abuse treatment, so our income decreased and we choose to pay our mortgage and other bills rather than our income taxes [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-00313 (29 September 2011).].
710. I did not purchase the 75 cases of unstamped cigarettes. I purchased the stamped cases from the distributor, and they were held by my friend in his vault as collateral for the loan I advanced to him, but we had to periodically exchange the old cases in the vault for new stock so that I could sell the old cigarettes in my store before they went stale and lost their value as collateral for the loan [Shaitrit v. California State Board of Equalization, 2011 Cal. App. Unpub. LEXIS 8007 (Cal.App. 2011).].
711. I shouldn't be liable for the tax deficiency assessed on the tax return I filed because I did not review the return before I filed it [Ward v. Commissioner, T.C. Memo. 2011-253.].
712. "Petitioner husband testified that he filed late because he was preoccupied with petitioner wife's immigration problems." [Gutierrez. v. Commissioner, T.C. Memo. 2011-263.].
713. "In a letter to the Board dated 28 January 2011 the taxpayer explained that the delay was due to his 'family problem' as his second daughter in the age of 12, has teenage problem since 2009, always left home and missing, the worse case was that she was reported missing for a month to Hong Kong Police. In hope of my daughter to keep away from her friends, the family was busy to move home several times from [Address A] to [Address B] and then to [Address C] in two years’ time. As the result, family members had not paid much attention to correspondence during the period of home moving, including those letters issued by Inland Revenue Department." [Hong Kong Inland Revenue Board of Review Case No. D2/12 (27 April 2011).].
714. "Mr Afsar maintained that his ability to deal with the Commissioners' requirements had been seriously affected by his duties as an Imam of the Islamic faith. He had additional duties to deal with in Ramadhan, which 30 day period began at the end of September 2006, and those duties 'impinged on his evenings and nights as well as his mornings and afternoons'."(The deadline was 30 August, before Ramadan began) [Afsar v. Revenue & Customs Commissioners, SpC 645, [2008] STC (SCD) 348.].
715. It was reasonable for the member of staff concerned to withhold payment of a sum which she thought exceeded a million pounds rather than to make an overpayment of that amount. [MS Peripherals Ltd v Revenue & Customs Commissioners, [2007] EWHC 1128 (Ch), [2008] STC 985.].
716. I shouldn't be liable for the company's unpaid taxes because even though I was the titular president of the company in 1997, the title was meaningless because I held no position and had no authority. I signed the company's 1998 tax return at the request of the company's owner he still had my name listed as an officer and he didn't want to have to get the tax return redone [Modad v. Michigan Dept. of Treasury, Michigan Tax Tribunal, Docket No. 379026 (17 October 2011).].
717. The intent of my illegally structured money transfers was to conceal the improper use of runners to chase ambulances for my personal injury law practice, but I didn't do it with the intent to evade paying the taxes [United States v. Curtis John Coney, 2011 U.S. Dist. LEXIS 29311, 2011-1 U.S.T.C. (CCH) ¶ 50,300; 107 A.F.T.R.2d (RIA) 1414 (E.D. La. 2011).].
718. Our 2002 tax return was not filed until 2006 because were overwhelmed by the birth of triplets, one of whom sustained challenges following birth, and before we were able to file, Hurricane Katrina wiped out part of our house, and completely destroyed a rental property that we hoped would help to pay some of our son's medical expenses (their tax return was already late when Hurricane Katrina struck in 2005) [Jackson v. United States, 100 Fed. Cl. 34 (2011)].
719. I shouldn't be liable for the unpaid taxes because I was the Chief Apostle of the organization and therefore prohibited from participating in its financial management (she totally controlled the organization) [In re Gilbert Vaughn, 2011 Bankr. LEXIS 4438, 2011 TNT 202-16 (Bankr., E.D.N.C., 2011).].
720. I didn't file my tax returns because I disapproved of the wars in Iraq and Afghanistan and didn't want to fuel the government's killing machine. I see little distinction between the activities of the IRS and Tax Court and the activities of those good law-abiding Germans who drove the trains to the death camps [Erik McBride Thompson v. Commissioner, T.C. Memo. 2011-291.].
721. I couldn't pay my taxes because my home construction business was negatively impacted by the events of September 11, 2001. As a result of the September 11, 2011 terrorist attacks, the economy declined, home sales decreased, and my home construction business suffered greatly as illegal immigrants were taking jobs at lower wages than those legally employable [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-07411 (25 October 2011).].
722. My client didn't pay his taxes because he was involved in a destructive relationship with a partner who was his emotionally unstable partner who was very unstable, fragile and emotionally needy, and on medication and prone to suicide threats and attempts. In an attempt to maintain his relationship with his partner and keep his partner emotionally together, my client invested over $3 million in his partner's failed business. My client suffered from anxiety and depression, and, out of fear of losing his relationship with his partner, my client invested over $3 million in his partner's failing business and subsidized his partner's exorbitant travel expenses. (The client was a partner in a top New York law firm whose average annual income exceeded $1 million, and who failed to file tax returns from 2001 through 2008) [Defendant's Sentencing Memorandum, United States v. John J. O'Brien, Docket No. 11-CR-652 (HBP), S.D.N.Y. (3 January 2012), see also Mark Hamblett, "Ex-Sullivan Partner Gets 2 Years for Failure to Pay Income Taxes, N.Y.L.J., 12 January 2012, p. 1].
697. I was having problems with my marriage, so there was no point in paying myself large amounts that would be matrimonial income (he had diverted most of the income from his medical practice to a sham trust to avoid the income tax) [Penny v. Commissioner of Inland Revenue, [2011] NZSC 95 (New Zealand Supreme Ct., 2011).].
698. "He was going through a contentious divorce. His wife was living in their retirement home in a different state when she cleaned out all their bank accounts, maxed out their credit cards, hired a divorce attorney, and filed for divorce. He claimed he did not have access to his tax records and personal documents until 2007 (he still hadn't filed his 2006, 2007, 2008 or 2009 tax returns as of 2010) [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-01183 (30 June 2011).].
699. The Revenue Department examiner who conducted the Sales Tax audit lacked adequate qualifications and experience (the Examiner had been employed by the Department for 5 years, held a business degree with a concentration in accounting, and had received training in auditing sales taxes). [Quick N EZ, Inc. v. Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. S. 10-245 (23 August 2011).].
700. We lost equipment in the September 11, 2001 attack on the World Trade Center, and incurred significantly higher insurance rates which hurt our business. I had to sell my houseboat and take out a second mortgage on my Colorado ranch to give additional funding to the business [Concert Staging Services Inc. v. Commissioner, T.C. Memo. 2011-231.].
701. I presumed that my accountant had requested an extension until October 15 2006 to file our return, so the penalties should only be calculated beginning October 16 2006 (he didn’t file his 2004 or 2005 tax returns until January 12, 2007, and didn’t file his 2003 or 2002 tax returns at all) [Greenwald v. Commissioner, T.C. Memo. 2011-239.].
702. Our comptroller died, a former employee had embezzled money and our customer list was stolen [In re Sunrooms Plus, Inc., New Mexico Taxation & Revenue Dept., No. 11-20 (9 September 2011).].
703. I shouldn’t have to pay the tax delinquencies because the Department of Revenue did not make a formal assessment until 6 years after they completed their special investigation (he was a former Wisconsin State Senator who pleaded guilty and was imprisoned on federal charges for accepting kickbacks) [ George v. Wisconsin Department of Revenue, Wisconsin Tax Appeals Commission, Docket No. 08-I-57 & 08-I-60 (23 September 2011).].
704. My 72-month sentence for aiding and abetting the preparation of false tax returns should be reduced because I am an immigrant supporting a large family, I suffered traumatic experiences during the Somali civil war, and Mr. Mohamed, who taught me how to fraudulently request the fuel tax credit on the tax returns I prepared, only got a sentence of 18 to 24 months (he prepared more than 1,000 fraudulent tax returns, and he jumped bail before trial and absconded to Canada) [United States v. Yahya Muhumed Shakal, 644 F.3d 642 (8th Cir. 2011).].
705. The jury shouldn't have been given the evidence that I failed to file my personal tax returns from 2002 to 2007 because it simply invited the jury to punish the bad man because of his character (he was a tax return preparer who was convicted of defrauding the government and aiding and abetting in the preparation of false tax returns) [United States v. Maxwell, 643 F.3d 1096 (8th Cir. 2011).].
706. I shouldn't be responsible for the withholding taxes because I wasn't really the manager; my job was to babysit the owner's son and to control his penchant for excessive expenditures and financial mismanagement [United States v. Cooke, 2011 U.S. Dist. LEXIS 35227, 2011-1 U.S.T.C. (CCH) ¶ 50,333, 107 A.F.T.R.2d (RIA) 1587 (S.D. Ind. 2011).].
707. Our lap dancers' services for our patrons were live dramatic choreographic performances and therefore exempt from the sales tax [677 New Loudon Corp, v, Tax Appeals Tribunal, 85 A.D.3d 1341, 925 N.Y.S.2d 686 (3d Dept. 2011).].
708. After the September 11, 2001 terrorist attacks, Congress enacted the Air Transportation Safety & System Stabilization Act, which delayed the due date for payment of the transportation excise taxes collected from my airline's passengers. We therefore used the funds as working capital, and shouldn't have to pay the taxes to the government [Conway v. United States, 647 F.3d 228 (5th Cir. 2011).].
709. My husband was unemployed during his substance abuse treatment, so our income decreased and we choose to pay our mortgage and other bills rather than our income taxes [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-00313 (29 September 2011).].
710. I did not purchase the 75 cases of unstamped cigarettes. I purchased the stamped cases from the distributor, and they were held by my friend in his vault as collateral for the loan I advanced to him, but we had to periodically exchange the old cases in the vault for new stock so that I could sell the old cigarettes in my store before they went stale and lost their value as collateral for the loan [Shaitrit v. California State Board of Equalization, 2011 Cal. App. Unpub. LEXIS 8007 (Cal.App. 2011).].
711. I shouldn't be liable for the tax deficiency assessed on the tax return I filed because I did not review the return before I filed it [Ward v. Commissioner, T.C. Memo. 2011-253.].
712. "Petitioner husband testified that he filed late because he was preoccupied with petitioner wife's immigration problems." [Gutierrez. v. Commissioner, T.C. Memo. 2011-263.].
713. "In a letter to the Board dated 28 January 2011 the taxpayer explained that the delay was due to his 'family problem' as his second daughter in the age of 12, has teenage problem since 2009, always left home and missing, the worse case was that she was reported missing for a month to Hong Kong Police. In hope of my daughter to keep away from her friends, the family was busy to move home several times from [Address A] to [Address B] and then to [Address C] in two years’ time. As the result, family members had not paid much attention to correspondence during the period of home moving, including those letters issued by Inland Revenue Department." [Hong Kong Inland Revenue Board of Review Case No. D2/12 (27 April 2011).].
714. "Mr Afsar maintained that his ability to deal with the Commissioners' requirements had been seriously affected by his duties as an Imam of the Islamic faith. He had additional duties to deal with in Ramadhan, which 30 day period began at the end of September 2006, and those duties 'impinged on his evenings and nights as well as his mornings and afternoons'."(The deadline was 30 August, before Ramadan began) [Afsar v. Revenue & Customs Commissioners, SpC 645, [2008] STC (SCD) 348.].
715. It was reasonable for the member of staff concerned to withhold payment of a sum which she thought exceeded a million pounds rather than to make an overpayment of that amount. [MS Peripherals Ltd v Revenue & Customs Commissioners, [2007] EWHC 1128 (Ch), [2008] STC 985.].
716. I shouldn't be liable for the company's unpaid taxes because even though I was the titular president of the company in 1997, the title was meaningless because I held no position and had no authority. I signed the company's 1998 tax return at the request of the company's owner he still had my name listed as an officer and he didn't want to have to get the tax return redone [Modad v. Michigan Dept. of Treasury, Michigan Tax Tribunal, Docket No. 379026 (17 October 2011).].
717. The intent of my illegally structured money transfers was to conceal the improper use of runners to chase ambulances for my personal injury law practice, but I didn't do it with the intent to evade paying the taxes [United States v. Curtis John Coney, 2011 U.S. Dist. LEXIS 29311, 2011-1 U.S.T.C. (CCH) ¶ 50,300; 107 A.F.T.R.2d (RIA) 1414 (E.D. La. 2011).].
718. Our 2002 tax return was not filed until 2006 because were overwhelmed by the birth of triplets, one of whom sustained challenges following birth, and before we were able to file, Hurricane Katrina wiped out part of our house, and completely destroyed a rental property that we hoped would help to pay some of our son's medical expenses (their tax return was already late when Hurricane Katrina struck in 2005) [Jackson v. United States, 100 Fed. Cl. 34 (2011)].
719. I shouldn't be liable for the unpaid taxes because I was the Chief Apostle of the organization and therefore prohibited from participating in its financial management (she totally controlled the organization) [In re Gilbert Vaughn, 2011 Bankr. LEXIS 4438, 2011 TNT 202-16 (Bankr., E.D.N.C., 2011).].
720. I didn't file my tax returns because I disapproved of the wars in Iraq and Afghanistan and didn't want to fuel the government's killing machine. I see little distinction between the activities of the IRS and Tax Court and the activities of those good law-abiding Germans who drove the trains to the death camps [Erik McBride Thompson v. Commissioner, T.C. Memo. 2011-291.].
721. I couldn't pay my taxes because my home construction business was negatively impacted by the events of September 11, 2001. As a result of the September 11, 2011 terrorist attacks, the economy declined, home sales decreased, and my home construction business suffered greatly as illegal immigrants were taking jobs at lower wages than those legally employable [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-07411 (25 October 2011).].
722. My client didn't pay his taxes because he was involved in a destructive relationship with a partner who was his emotionally unstable partner who was very unstable, fragile and emotionally needy, and on medication and prone to suicide threats and attempts. In an attempt to maintain his relationship with his partner and keep his partner emotionally together, my client invested over $3 million in his partner's failed business. My client suffered from anxiety and depression, and, out of fear of losing his relationship with his partner, my client invested over $3 million in his partner's failing business and subsidized his partner's exorbitant travel expenses. (The client was a partner in a top New York law firm whose average annual income exceeded $1 million, and who failed to file tax returns from 2001 through 2008) [Defendant's Sentencing Memorandum, United States v. John J. O'Brien, Docket No. 11-CR-652 (HBP), S.D.N.Y. (3 January 2012), see also Mark Hamblett, "Ex-Sullivan Partner Gets 2 Years for Failure to Pay Income Taxes, N.Y.L.J., 12 January 2012, p. 1].
10 August, 2011
Tax Excuses 684 - 695:
684. "When I’m in the Legislature, my cash flow is really tight and I can’t be out there billing" (he was John Campbell, the President of the Vermont State Senate, and he failed to pay the property taxes on his own home) ["Vermont Senate President Pays Off $6,000 Tax Debt," Brattleboro Reformer, 8 June 2011.].
685. I took the position that tax liability does not attach until the tax return is filed, so as long as I didn't file my tax returns I had no tax liability [Matter of Arthur Heald, State of Vermont Professional Responsibility Board, PRB File No. 2004.104 (15 June 2004)].
686. "[M]y wife and I finally decided that the circumstance in Colorado was beginning to significantly damage our family's quality of life, and we arranged for moving of the contents of our Illinois house to Colorado. When the moving van arrived, because the Colorado house was much smaller than the Illinois house, the garage was literally stacked with furniture and boxes from floor to ceiling, and the financial records were not reasonably accessible or organized. For practical purposes, the records needed to prepare my 2000 tax return remained unavailable until the summer of 2002." [Schroer v. United States, 594 F. Supp.2d 1257, 1265 - 1266 (D. Colo. 2008).].
687. Based upon our low reported income, I was concerned that our tax return would be pulled if we did not take the Earned Income Credit (they had fraudulently underreported their income) [United States v. Aldridge, 561 F.3d 759 (8th Cir. 2009), cert. denied 130 S. Ct. 1095, 175 L. Ed. 2d 913 (2010).].
688. Yes, I was the president of the corporation, but I was not allowed to pay the taxes without the approval of the corporation's investors [Reppert v. IRS, 2011 U.S. App. LEXIS 6160, 2011-1 U.S.T.C. (CCH) 50,298; 107 A.F.T.R.2d (RIA) 1461 (11th Cir. 2011).].
689. I received notices from the IRS, I read them, but I just didn't do anything further with them (he failed to file Federal and state tax returns from 2002 through 2006, when his annual income was between $360,000 and $600,000) [Matter of Alexander P. Rosenberg, 82 A.D.3d 85, 918 N.Y.S.2d 20 (1st Dept. 2011).].
690. The IRS agent who audited me may have known me because she worked in the same building as I did (Taxpayer was an IRS employee who was subjected to the usual employee audit, and he failed to substantiate his deductions) [Freedman v. Commissioner, T.C. Memo 2010-155.].
691. If the IRS owes me a refund then I don't file my tax return. In 2008 my wife convinced me to file my 2005 tax return, and I was dumbfounded when the IRS reviewed the 2005 return and determined that there was a tax deficiency [Anderson v. Commissioner, T.C. Summary Op. 2011-84.].
692. "In the course of investigation, the Commissioner requested the Appellant to supply the accounting books and records of the Business covering the period from 1 April 1994 to 31 March 2001. The books and records from 1 April 1996 to 31 March 2001 were supplied but those for the two years from 1 April 1994 to 31 March 1996 were alleged to have been damaged by water and excrement, and were not made available to the Commissioner." [Hong Kong Inland Revenue Board of Review Case No. D38/10 (14 January 2011).].
693. Our basement flooded and my wife mistakenly threw out a soaked box of papers which contained our financial records for our 1985 tax return. When my wife realized this, she didn't tell me because she didn't want me to be angry with her, so she just blocked it out of her mind. When it came time for her to do the 1986 taxes, the tax preparer asked her for our 1985 tax return, which did not exist, so she walked out of the tax preparer's office and blocked it out of her mind. The same thing happened with our 1987 taxes. When my wife finally told me, it caused an immediate and severe family crisis, and the family remained traumatized for over two years [Attorney Grievance Commission v. Gavin, 350 Md. 176, 711 A.2d 193 (1998).].
694. I was, in essence, a Rent-a-CEO brought on to facilitate the liquidation and reorganization process the firm. My role was merely that of a figure-head, employed by the venture capitalists spearheading the reorganization so that it appeared as though the Company had a Chief Executive Officer. I signed the Corporate Tax Returns for convenience purposes only [Layne v. Michigan Dept. of Treasury, Michigan Tax Tribunal, Docket No. 383266 (28 June 2011).].
695. "Ms. Brown cites to a litany of events that occurred between September 10, 1996 and April 2001. Specifically, Ms. Brown points to her difficult pregnancies, the serious medical issues suffered by her children and her grandmother (who lived with Ms. Brown), the supposed interference by the Ocala Police Department in the operation of Safe-Deposit, the supposed malpractice by the law firm she hired to file suit against the Ocala Police Department, the late payments by Safe-Deposit's clients, and the fact that she cannot remember the IRS ever advising her of the penalties for not paying the trust fund taxes as proof of the undue hardships she suffered which prevented her from paying the trust fund taxes." [Brown v. United States, 769 F. Supp. 2d 1355 (M.D. Fla. 2011).].
685. I took the position that tax liability does not attach until the tax return is filed, so as long as I didn't file my tax returns I had no tax liability [Matter of Arthur Heald, State of Vermont Professional Responsibility Board, PRB File No. 2004.104 (15 June 2004)].
686. "[M]y wife and I finally decided that the circumstance in Colorado was beginning to significantly damage our family's quality of life, and we arranged for moving of the contents of our Illinois house to Colorado. When the moving van arrived, because the Colorado house was much smaller than the Illinois house, the garage was literally stacked with furniture and boxes from floor to ceiling, and the financial records were not reasonably accessible or organized. For practical purposes, the records needed to prepare my 2000 tax return remained unavailable until the summer of 2002." [Schroer v. United States, 594 F. Supp.2d 1257, 1265 - 1266 (D. Colo. 2008).].
687. Based upon our low reported income, I was concerned that our tax return would be pulled if we did not take the Earned Income Credit (they had fraudulently underreported their income) [United States v. Aldridge, 561 F.3d 759 (8th Cir. 2009), cert. denied 130 S. Ct. 1095, 175 L. Ed. 2d 913 (2010).].
688. Yes, I was the president of the corporation, but I was not allowed to pay the taxes without the approval of the corporation's investors [Reppert v. IRS, 2011 U.S. App. LEXIS 6160, 2011-1 U.S.T.C. (CCH) 50,298; 107 A.F.T.R.2d (RIA) 1461 (11th Cir. 2011).].
689. I received notices from the IRS, I read them, but I just didn't do anything further with them (he failed to file Federal and state tax returns from 2002 through 2006, when his annual income was between $360,000 and $600,000) [Matter of Alexander P. Rosenberg, 82 A.D.3d 85, 918 N.Y.S.2d 20 (1st Dept. 2011).].
690. The IRS agent who audited me may have known me because she worked in the same building as I did (Taxpayer was an IRS employee who was subjected to the usual employee audit, and he failed to substantiate his deductions) [Freedman v. Commissioner, T.C. Memo 2010-155.].
691. If the IRS owes me a refund then I don't file my tax return. In 2008 my wife convinced me to file my 2005 tax return, and I was dumbfounded when the IRS reviewed the 2005 return and determined that there was a tax deficiency [Anderson v. Commissioner, T.C. Summary Op. 2011-84.].
692. "In the course of investigation, the Commissioner requested the Appellant to supply the accounting books and records of the Business covering the period from 1 April 1994 to 31 March 2001. The books and records from 1 April 1996 to 31 March 2001 were supplied but those for the two years from 1 April 1994 to 31 March 1996 were alleged to have been damaged by water and excrement, and were not made available to the Commissioner." [Hong Kong Inland Revenue Board of Review Case No. D38/10 (14 January 2011).].
693. Our basement flooded and my wife mistakenly threw out a soaked box of papers which contained our financial records for our 1985 tax return. When my wife realized this, she didn't tell me because she didn't want me to be angry with her, so she just blocked it out of her mind. When it came time for her to do the 1986 taxes, the tax preparer asked her for our 1985 tax return, which did not exist, so she walked out of the tax preparer's office and blocked it out of her mind. The same thing happened with our 1987 taxes. When my wife finally told me, it caused an immediate and severe family crisis, and the family remained traumatized for over two years [Attorney Grievance Commission v. Gavin, 350 Md. 176, 711 A.2d 193 (1998).].
694. I was, in essence, a Rent-a-CEO brought on to facilitate the liquidation and reorganization process the firm. My role was merely that of a figure-head, employed by the venture capitalists spearheading the reorganization so that it appeared as though the Company had a Chief Executive Officer. I signed the Corporate Tax Returns for convenience purposes only [Layne v. Michigan Dept. of Treasury, Michigan Tax Tribunal, Docket No. 383266 (28 June 2011).].
695. "Ms. Brown cites to a litany of events that occurred between September 10, 1996 and April 2001. Specifically, Ms. Brown points to her difficult pregnancies, the serious medical issues suffered by her children and her grandmother (who lived with Ms. Brown), the supposed interference by the Ocala Police Department in the operation of Safe-Deposit, the supposed malpractice by the law firm she hired to file suit against the Ocala Police Department, the late payments by Safe-Deposit's clients, and the fact that she cannot remember the IRS ever advising her of the penalties for not paying the trust fund taxes as proof of the undue hardships she suffered which prevented her from paying the trust fund taxes." [Brown v. United States, 769 F. Supp. 2d 1355 (M.D. Fla. 2011).].
18 May, 2011
Tax Excuses 662 - 683:
662. "My decision to quit paying the tax was made in 1992, not before, and was the result of a letter sent, asking for the basis for their taxing me which received a reply after about 3 months, which was no answer to my question, but simply stated to ignore any correspondence received from them until I received an answer." [Goldston v. Commissioner, T.C. Memo. 2011-9.].
663. "In pressure to close case we agreed under duress due to the fact the team leader stated that we would not receive abatement of penalties and simple interest calculation if we did not agree to a taxable amount of 68%" (they failed to keep adequate records so the Department of Taxation & Finance did an audit and observation) [Matter of Mamma Rosa's Cucina Corp., New York State Div. of Tax Appeals, Docket No. DTA 823759 (13 January 2011).].
664. "Petitioner contends that his heart condition, attention deficit disorder, and decreased earnings constituted reasonable cause for his failure to timely file returns and pay taxes." [Pushman v. Commissioner, T.C. Summ. Op. 2011-6.].
665. My sisters argued with me over the decisions for my mother's health care and had a restraining order prohibiting me from contacting my mother. I had business problems and had problems finding work in a new field on account of my age and the restraining order [Eckardt v. Commissioner, T.C. Summ. Op. 2011-13.].
666. Our daughter was extremely ill and was giving birth to a child at the time our tax return was due, and caring for her was so time consuming that we didn't file our tax return on time [Campbell v. Commissioner, T.C. Memo. 2011-42.].
667. I didn't know that my federal taxes were due, and I have had a life-long problem with identity theft [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-06388 (2 December 2010).].
668. The reason I owe money to the IRS is because I understated my taxes on my income tax returns [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-11772 (8 December 2010).].
669. "[Applicant] did not file his 2003 income tax returns because he was unsure of how much money he would need in the future. … He explained he did not file returns and pay his taxes because he believed that his business would become successful and then it would be easier to pay the debts." (he had spent $50,000 on a home renovation project during this time) [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-02780 (20 January 2011).].
670. My employer is a private corporation organized under the laws of Delaware and has no connection with the United States government [Fennel v. Commissioner, T.C. Summ. Op. 2011-19.].
671. My failure to file my personal tax returns and business withholding taxes from 2001 to 2005 was not willful because I had an installment agreement with the IRS (The respondent, a CPA who prepared tax returns for others, was was ineligible for an installment agreement, and was disbarred from practice before the IRS) [Office of Professional Responsibility v. Edwin Davis, Jr., U.S. Treasury Office of Professional Responsibility, Complaint No. 2007-35 (20 February 2008), aff'd, Dept. of Treasury Office of Chief Counsel, March 10, 2009.].
672. "Petitioner, in its petition, claims that the notices were not timely protested because the corporation’s president lacks both an understanding of the English language (speaking and reading) and the knowledge of the importance of responding to correspondence from the government or its agencies" Matter of ZW Deli & Grocery Corp., New York State Div. of Tax Appeals, Docket No. DTA 823643 (3 March 2011).].
673. My client shouldn't have to pay the tax on the distribution from his deceased father's IRA account because his mother killed his father, and she should be the one to pay the tax [D.N. v. United States, 625 F.3d 1222 (9th Cir. 2010).].
674. The 10% delinquency penalty of $551,011.88, which was assessed by Stanislaus County because San Francisco County did not timely return our erroneous payment to it in time to pay Stanislaus County, was an unfair windfall to Stanislaus County [ZC Real Estate Tax Solutions Ltd. v. Ford, 191 Cal. App. 4th 378, 119 Cal. Rptr. 3d 85 (Cal.App., 2010).
675. The aggregation of the two apartments is an affront to a married woman’s right to enter into transactions and have sole ownership over property as though she were unmarried (The couple had purchased a Manhattan luxury co-op residential apartment consisting of two connected units, purchased at same closing at same time, which, when aggregated together, exceeded $1 million threshold and thereby became subject to New York's so-called "mansion tax"). [Matter of Michael & Frances Sacks, N.Y. State Tax Tribunal, Decision DTA No. 822322 (10 March 2011).].
676. "I am now 71 years old and live in Thailand. My only source of income is Social Security. Thailand is the only place I can afford to live on my income." [High v. Commissioner, T.C. Summ. Op. 2011-36.].
677. The money I received from my freelance photography business was pay for work outside the scope of the Internal Revenue Code and relevant Alabama tax law [Richards v. State, Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. INC 10-1133 (30 March 2011).].
678. We shouldn't be liable for sales tax collections on our cover charge because most of our patrons only listen to the music but they do not dance [Matter of Anonymous, Washington Department of Revenue, Appeals Div., Determination No. 09-0311, 30 WTD 1 (2011).].
679. When we changed our primary bank we didn't properly change the electronic funds transfer arrangements [Indiana Dept. of State Revenue, Letter of Findings No. 04-20100701P, Indiana Register, 20110427-IR-045110244NRA (27 April 2011).].
680. The IRS had no right to keep our Economic Stimulus Act rebates and apply them to our back taxes because the compromise agreements between us and the IRS for our past delinquent taxes were written in colloquial English, and were not intended to cover the technicality of the Stimulus Act's tax rebates. For example, the agreement allows the IRS to "keep any refund" even though, in technical Code jargon, the IRS does not "keep" refunds [Maniolos v. United States, 741 F. Supp. 2d 555, 569 - 570 (S.D.N.Y. 2010).].
681. The federal income tax constitutes an enslavement of individuals in violation of the Thirteenth Amendment of the United States Constitution. [Allamby v. United States, 2010 U.S. Claims LEXIS 7, 2010-1 U.S.T.C. (CCH) 50,188, 105 A.F.T.R.2d (RIA) 664 (Fed.Cl., No. 09-868C, 21 January 2010).].
682. I filed the decedent's Estate Tax return late because I couldn't sign it on the due date because I wasn't sure all of the Estate assets had been discovered and properly valued [Estate of Cederloff v. United States, 2010 U.S. Dist. LEXIS 94523, 106 A.F.T.R.2d (RIA) 6292 (No. 8:08-CV-02863, D. Md. 10 September 2010).].
683. My sales tax problems with the State of Michigan were because someone from Mobil Oil said that I could better compete as an independent station by cutting expenses and not paying sales tax, and that Mobil would pay the tax [United States v. Safiedine, 2010 U.S. Dist. LEXIS 110333 (No. 06-20137, E.D. Mich., 18 Oct. 2010).].
663. "In pressure to close case we agreed under duress due to the fact the team leader stated that we would not receive abatement of penalties and simple interest calculation if we did not agree to a taxable amount of 68%" (they failed to keep adequate records so the Department of Taxation & Finance did an audit and observation) [Matter of Mamma Rosa's Cucina Corp., New York State Div. of Tax Appeals, Docket No. DTA 823759 (13 January 2011).].
664. "Petitioner contends that his heart condition, attention deficit disorder, and decreased earnings constituted reasonable cause for his failure to timely file returns and pay taxes." [Pushman v. Commissioner, T.C. Summ. Op. 2011-6.].
665. My sisters argued with me over the decisions for my mother's health care and had a restraining order prohibiting me from contacting my mother. I had business problems and had problems finding work in a new field on account of my age and the restraining order [Eckardt v. Commissioner, T.C. Summ. Op. 2011-13.].
666. Our daughter was extremely ill and was giving birth to a child at the time our tax return was due, and caring for her was so time consuming that we didn't file our tax return on time [Campbell v. Commissioner, T.C. Memo. 2011-42.].
667. I didn't know that my federal taxes were due, and I have had a life-long problem with identity theft [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-06388 (2 December 2010).].
668. The reason I owe money to the IRS is because I understated my taxes on my income tax returns [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-11772 (8 December 2010).].
669. "[Applicant] did not file his 2003 income tax returns because he was unsure of how much money he would need in the future. … He explained he did not file returns and pay his taxes because he believed that his business would become successful and then it would be easier to pay the debts." (he had spent $50,000 on a home renovation project during this time) [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 10-02780 (20 January 2011).].
670. My employer is a private corporation organized under the laws of Delaware and has no connection with the United States government [Fennel v. Commissioner, T.C. Summ. Op. 2011-19.].
671. My failure to file my personal tax returns and business withholding taxes from 2001 to 2005 was not willful because I had an installment agreement with the IRS (The respondent, a CPA who prepared tax returns for others, was was ineligible for an installment agreement, and was disbarred from practice before the IRS) [Office of Professional Responsibility v. Edwin Davis, Jr., U.S. Treasury Office of Professional Responsibility, Complaint No. 2007-35 (20 February 2008), aff'd, Dept. of Treasury Office of Chief Counsel, March 10, 2009.].
672. "Petitioner, in its petition, claims that the notices were not timely protested because the corporation’s president lacks both an understanding of the English language (speaking and reading) and the knowledge of the importance of responding to correspondence from the government or its agencies" Matter of ZW Deli & Grocery Corp., New York State Div. of Tax Appeals, Docket No. DTA 823643 (3 March 2011).].
673. My client shouldn't have to pay the tax on the distribution from his deceased father's IRA account because his mother killed his father, and she should be the one to pay the tax [D.N. v. United States, 625 F.3d 1222 (9th Cir. 2010).].
674. The 10% delinquency penalty of $551,011.88, which was assessed by Stanislaus County because San Francisco County did not timely return our erroneous payment to it in time to pay Stanislaus County, was an unfair windfall to Stanislaus County [ZC Real Estate Tax Solutions Ltd. v. Ford, 191 Cal. App. 4th 378, 119 Cal. Rptr. 3d 85 (Cal.App., 2010).
675. The aggregation of the two apartments is an affront to a married woman’s right to enter into transactions and have sole ownership over property as though she were unmarried (The couple had purchased a Manhattan luxury co-op residential apartment consisting of two connected units, purchased at same closing at same time, which, when aggregated together, exceeded $1 million threshold and thereby became subject to New York's so-called "mansion tax"). [Matter of Michael & Frances Sacks, N.Y. State Tax Tribunal, Decision DTA No. 822322 (10 March 2011).].
676. "I am now 71 years old and live in Thailand. My only source of income is Social Security. Thailand is the only place I can afford to live on my income." [High v. Commissioner, T.C. Summ. Op. 2011-36.].
677. The money I received from my freelance photography business was pay for work outside the scope of the Internal Revenue Code and relevant Alabama tax law [Richards v. State, Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. INC 10-1133 (30 March 2011).].
678. We shouldn't be liable for sales tax collections on our cover charge because most of our patrons only listen to the music but they do not dance [Matter of Anonymous, Washington Department of Revenue, Appeals Div., Determination No. 09-0311, 30 WTD 1 (2011).].
679. When we changed our primary bank we didn't properly change the electronic funds transfer arrangements [Indiana Dept. of State Revenue, Letter of Findings No. 04-20100701P, Indiana Register, 20110427-IR-045110244NRA (27 April 2011).].
680. The IRS had no right to keep our Economic Stimulus Act rebates and apply them to our back taxes because the compromise agreements between us and the IRS for our past delinquent taxes were written in colloquial English, and were not intended to cover the technicality of the Stimulus Act's tax rebates. For example, the agreement allows the IRS to "keep any refund" even though, in technical Code jargon, the IRS does not "keep" refunds [Maniolos v. United States, 741 F. Supp. 2d 555, 569 - 570 (S.D.N.Y. 2010).].
681. The federal income tax constitutes an enslavement of individuals in violation of the Thirteenth Amendment of the United States Constitution. [Allamby v. United States, 2010 U.S. Claims LEXIS 7, 2010-1 U.S.T.C. (CCH) 50,188, 105 A.F.T.R.2d (RIA) 664 (Fed.Cl., No. 09-868C, 21 January 2010).].
682. I filed the decedent's Estate Tax return late because I couldn't sign it on the due date because I wasn't sure all of the Estate assets had been discovered and properly valued [Estate of Cederloff v. United States, 2010 U.S. Dist. LEXIS 94523, 106 A.F.T.R.2d (RIA) 6292 (No. 8:08-CV-02863, D. Md. 10 September 2010).].
683. My sales tax problems with the State of Michigan were because someone from Mobil Oil said that I could better compete as an independent station by cutting expenses and not paying sales tax, and that Mobil would pay the tax [United States v. Safiedine, 2010 U.S. Dist. LEXIS 110333 (No. 06-20137, E.D. Mich., 18 Oct. 2010).].
03 January, 2011
Tax Excuses 634 - 661:
634. The penalty for assessed on us was a heavy burden for a struggling business [Anglo Persian Emporium Trading Co., Ltd. v. Her Majesty's Revenue & Customs (No. TC00584, Appeal number LON/2008/1444, [2010] UKFTT 296 (TC)
1st Tier Tribunal, London, 1 July 2010).].
635. I had sold a business, spent all the proceeds of sale and had no money left to pay the unexpected tax bill [Neil Clarke v. Her Majesty's Revenue & Customs (No. TC00603, Appeal number TC2009/16834, [2010] UKFTT 316 (8 July 2010).].
636. My employer used the wrong tax code rate (his tax return was filed nearly a year past the due date) [Stuart Griffiths v. Her Majesty's Revenue & Customs (No. TC00653, Appeal number TC/2010/02166, [2010] UKFTT 371 (TC) (10 August 2010).].
637. The merger of our parent corporation with the Lorillard Corporation caused abnormal conditions and business problems, had a substantially adverse effect on personnel, and necessitated additional time being spent in combining procedure, tax calendars, and files in order to develop a systematic and effective work pattern for our tax department [Appeal of Loew's San Francisco Hotel Corp., California State Board of Equalization, SBE-XIX-193,73-SBE-050 (17 September 1973.).].
638. When I let my partner withdraw $100,000 from the business he agreed to pay the taxes [Illinois Dept. of Revenue v. John Doe, Illinois Dept. of Revenue Office of Admin. Hearings, Dkt. No. ST 10-05 (2 April 2010).].
639. The controller we had at that time had failed to accurately reconcile the cash against the general ledger in such a way so that we could tell that we had missed the payment [Illinois Dept. of Revenue v. ABC Sales and Service, LLC, Illinois Dept. of Revenue Office of Admin. Hearings, Dkt. No. ST 10-09 (24 May 2010).].
640. I owe no tax because I have rendered all tribute that the scripture, commonly referred to as the Holy Bible, requires me to render [Glover v. Commissioner, T.C. Memo. 2010-228, n. 9.].
641. As we were preparing for our acquisition of Texaco, we had problems with our new computer system, and we had difficulties in hiring and retaining qualified personnel in our Tax Department and Computer Operations Department [Matter of Getty Terminals Corp., N.Y. State Tax Tribunal, Decision DTA No. 810743 (17 November 1994).].
642. I was taking care of my sick mother, and I also suffered injuries while playing football for the Oakland Raiders [Matter of the Trace R. L. Armstrong, California State Board of Equalization, No. 474197 (23 February 2010).].
643. The tax return was hidden by a misplaced file on a desk and we therefore thought the return was filed when it was not [Matter of Purdue Regency Apartments, California State Board of Equalization, No. 495740 (13 July 2010).].
644. The employee who was supposed to file the gross product returns left her employment, and we had a staffing shortage on account of declining oil prices [Matter of The Termo Company, Wyoming State Board of Equalization, No. 2000-77 (11 August 2000).].
645. "I appeal to you to waive the tax penalty, as this year has been quite a financial struggle for me. No only was my 13th month salary halved, but there was also no profit share and this year my company has requested me to take 4 weeks unpaid leave. With all my prior commitments this year I am finding it very hard to meet these financially." (He understated his income on his tax return). [Hong Kong Inland Revenue Board of Review Case No. D59/09 (19 March 2010).].
646. We have been suffering from financial hardship due to the recession. The federal and state governments have an express policy of helping small businesses, of which we are one. Affirming the lateness penalties on our sales tax return and payment will cause us further hardship, while the waiver of these additions will further the governmental policy of aiding small businesses by helping us survive the recession. [West Virginia Office of Tax Appeals, Decision Nos. 09-039 C & 09-072 C (4 February 2010).].
647. When responsibilities for filing our Washington State tax returns transitioned from our home office in Oakbrook, Illinois, to its accounting center in Columbus, Ohio, the payment due date was inadvertently changed in our computer system from the 21st of the month to the to the 25 th of the month [Matter of McDonald's Restaurants of Washington, Inc., Washington Board of Tax Appeals, No. 64482 (13 March 2007).].
648. My wife, who was the business bookkeeper, had side effects from her surgery and her use of valium, so after she prepared the tax returns she just stuck them in her desk instead of filing them [Gargalianos v. Commissioner, Massachusetts Appellate Tax Board, Docket Nos. 167936-939 (18 January 1995).].
649. We didn't withhold and pay over the subcontractor's taxes because the subcontractor was the owner's son, the relationship between father and son in a contractor-subcontractor relationship is unusual, and it caused us to not properly to consider matters as we would have had we engaged someone outside the family as subcontractor [Michael Mitchell v. Her Majesty's Revenue & Customs (No. TC00745, Appeal number TC/2009/10865, [2010] UKFTT 485 (TC) (11 October 2010).].
650. The funds withdrawn from my bank account in Ireland arrived late, and then, when I sent the check to my accountant so that he could pay Her Majesty's Revenue, he left for Malaysia [John Dignam v. Her Majesty's Revenue & Customs (No. TC00777, Appeal number: TC/2010/06114, [2010] UKFTT 522 (TC) (28 October 2010).].
651. "I admit when we came last time we bought tobacco. It was such a good deal we decided to go again." (The automobile was seized for evasion of customs duties) [Hitesh Desai v. Her Majesty's Revenue & Customs (No. TC00845, Appeal number: TC/2010/01211, [2010] UKFTT 595 (TC) (24 November 2010).].
652. The company's records were destroyed in a flood of the Grand River, but I didn't really function as an officer of the company; I just put my name down as the President as part of my usual practice for organizing the investment units of my client [Ross v. Levin, Ohio Bd. of Tax Appeals, No. 2007-M-117 (14 July 2009).].
653. I didn't file during the tax amnesty period because I thought that, based upon what I thought I owed, the penalties under the tax amnesty would be greater than the ordinary penalties for not filing [Doss v. Levin, Ohio Bd. of Tax Appeals, No. 2008-M-725 (14 September 2010).].
654. We should be exempt from the Sales & Use Tax because the University of Minnesota Veterinary Hospital doesn't pay them and the Minnesota Legislature never intended to give them a tax break for services that compete with a private sector veterinary clinic [Veterinary Radiation Therapy Clinic v. Commissioner, 2010 Minn. Tax LEXIS 35 (No. 7906-R, Minnesota Tax Ct., 29 November 2010).].
655. We don't approve of the way the government is spending our tax money. It would be better if our economy would collapse than to try to save the World Bank or the IMF [Matter of Anonymous, Dkt. No. 21375, Idaho State Tax Comm. (8 June 2009).].
656. "The people that would have any information regarding this ridiculous tax issue are my grandparents and father. None of which will return my phone calls or help me find a way to prove that I don’t owe any money. I have no clue how to get a hold of any paperwork that will prove my point. … I am a full time student paying for school out of my own pocket. This is a hugely unnecessary headache in my life." [Matter of Anonymous, Dkt. No. 21275, Idaho State Tax Comm. (12 June 2009).].
657. The money garnished from my paycheck should have been be applied towards my taxes that year (it was applied towards prior years' delinquent taxes) [Dillard v. State, Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. NC. 10-514 (18 November 2010).].
658. In the business owner's previous enterprises he was not significantly involved in collecting sales taxes or filing the tax returns with the Department of Revenue, and his misunderstanding was compounded by his medical condition, which made it difficult for him to understand things that would be readily apparent to others [Matter of Anonymous, Washington Dept. of Revenue, Determination No. 10-0125, 29 WTD 90 (21 April 2010).].
659. My accountant had to curtail his practice because his mother died, and then I had to take care of my ailing father, and I was stressed by the terrorist attack on September 11, 2001 [Verduzco v. Commissioner, T.C. Memo. 2010-278].
660. We shouldn't be liable for the Service Tax because we operate on a "No Profit, No Loss" basis and only recover the cost from the licensees (the Service Tax is imposed irrespective of profit or loss) [M/S RPG Enterprises Ltd v. Commissioner of Central Excise, 2008-TIOL-643-CESTAT (W. Zonal Bench, Mumbai, 4 April 2008).].
661. I had health problems, and, after the federal government suddenly shut down my employer due to questionable business practices at the end of 1998, I was busy looking for work but there were no jobs available. My tax obligations were not a priority as I was focused on trying to survive [Matter of the Appeal of Boxer, California State Board of Equalization, No. 474201, 13 July 2010).].
1st Tier Tribunal, London, 1 July 2010).].
635. I had sold a business, spent all the proceeds of sale and had no money left to pay the unexpected tax bill [Neil Clarke v. Her Majesty's Revenue & Customs (No. TC00603, Appeal number TC2009/16834, [2010] UKFTT 316 (8 July 2010).].
636. My employer used the wrong tax code rate (his tax return was filed nearly a year past the due date) [Stuart Griffiths v. Her Majesty's Revenue & Customs (No. TC00653, Appeal number TC/2010/02166, [2010] UKFTT 371 (TC) (10 August 2010).].
637. The merger of our parent corporation with the Lorillard Corporation caused abnormal conditions and business problems, had a substantially adverse effect on personnel, and necessitated additional time being spent in combining procedure, tax calendars, and files in order to develop a systematic and effective work pattern for our tax department [Appeal of Loew's San Francisco Hotel Corp., California State Board of Equalization, SBE-XIX-193,73-SBE-050 (17 September 1973.).].
638. When I let my partner withdraw $100,000 from the business he agreed to pay the taxes [Illinois Dept. of Revenue v. John Doe, Illinois Dept. of Revenue Office of Admin. Hearings, Dkt. No. ST 10-05 (2 April 2010).].
639. The controller we had at that time had failed to accurately reconcile the cash against the general ledger in such a way so that we could tell that we had missed the payment [Illinois Dept. of Revenue v. ABC Sales and Service, LLC, Illinois Dept. of Revenue Office of Admin. Hearings, Dkt. No. ST 10-09 (24 May 2010).].
640. I owe no tax because I have rendered all tribute that the scripture, commonly referred to as the Holy Bible, requires me to render [Glover v. Commissioner, T.C. Memo. 2010-228, n. 9.].
641. As we were preparing for our acquisition of Texaco, we had problems with our new computer system, and we had difficulties in hiring and retaining qualified personnel in our Tax Department and Computer Operations Department [Matter of Getty Terminals Corp., N.Y. State Tax Tribunal, Decision DTA No. 810743 (17 November 1994).].
642. I was taking care of my sick mother, and I also suffered injuries while playing football for the Oakland Raiders [Matter of the Trace R. L. Armstrong, California State Board of Equalization, No. 474197 (23 February 2010).].
643. The tax return was hidden by a misplaced file on a desk and we therefore thought the return was filed when it was not [Matter of Purdue Regency Apartments, California State Board of Equalization, No. 495740 (13 July 2010).].
644. The employee who was supposed to file the gross product returns left her employment, and we had a staffing shortage on account of declining oil prices [Matter of The Termo Company, Wyoming State Board of Equalization, No. 2000-77 (11 August 2000).].
645. "I appeal to you to waive the tax penalty, as this year has been quite a financial struggle for me. No only was my 13th month salary halved, but there was also no profit share and this year my company has requested me to take 4 weeks unpaid leave. With all my prior commitments this year I am finding it very hard to meet these financially." (He understated his income on his tax return). [Hong Kong Inland Revenue Board of Review Case No. D59/09 (19 March 2010).].
646. We have been suffering from financial hardship due to the recession. The federal and state governments have an express policy of helping small businesses, of which we are one. Affirming the lateness penalties on our sales tax return and payment will cause us further hardship, while the waiver of these additions will further the governmental policy of aiding small businesses by helping us survive the recession. [West Virginia Office of Tax Appeals, Decision Nos. 09-039 C & 09-072 C (4 February 2010).].
647. When responsibilities for filing our Washington State tax returns transitioned from our home office in Oakbrook, Illinois, to its accounting center in Columbus, Ohio, the payment due date was inadvertently changed in our computer system from the 21st of the month to the to the 25 th of the month [Matter of McDonald's Restaurants of Washington, Inc., Washington Board of Tax Appeals, No. 64482 (13 March 2007).].
648. My wife, who was the business bookkeeper, had side effects from her surgery and her use of valium, so after she prepared the tax returns she just stuck them in her desk instead of filing them [Gargalianos v. Commissioner, Massachusetts Appellate Tax Board, Docket Nos. 167936-939 (18 January 1995).].
649. We didn't withhold and pay over the subcontractor's taxes because the subcontractor was the owner's son, the relationship between father and son in a contractor-subcontractor relationship is unusual, and it caused us to not properly to consider matters as we would have had we engaged someone outside the family as subcontractor [Michael Mitchell v. Her Majesty's Revenue & Customs (No. TC00745, Appeal number TC/2009/10865, [2010] UKFTT 485 (TC) (11 October 2010).].
650. The funds withdrawn from my bank account in Ireland arrived late, and then, when I sent the check to my accountant so that he could pay Her Majesty's Revenue, he left for Malaysia [John Dignam v. Her Majesty's Revenue & Customs (No. TC00777, Appeal number: TC/2010/06114, [2010] UKFTT 522 (TC) (28 October 2010).].
651. "I admit when we came last time we bought tobacco. It was such a good deal we decided to go again." (The automobile was seized for evasion of customs duties) [Hitesh Desai v. Her Majesty's Revenue & Customs (No. TC00845, Appeal number: TC/2010/01211, [2010] UKFTT 595 (TC) (24 November 2010).].
652. The company's records were destroyed in a flood of the Grand River, but I didn't really function as an officer of the company; I just put my name down as the President as part of my usual practice for organizing the investment units of my client [Ross v. Levin, Ohio Bd. of Tax Appeals, No. 2007-M-117 (14 July 2009).].
653. I didn't file during the tax amnesty period because I thought that, based upon what I thought I owed, the penalties under the tax amnesty would be greater than the ordinary penalties for not filing [Doss v. Levin, Ohio Bd. of Tax Appeals, No. 2008-M-725 (14 September 2010).].
654. We should be exempt from the Sales & Use Tax because the University of Minnesota Veterinary Hospital doesn't pay them and the Minnesota Legislature never intended to give them a tax break for services that compete with a private sector veterinary clinic [Veterinary Radiation Therapy Clinic v. Commissioner, 2010 Minn. Tax LEXIS 35 (No. 7906-R, Minnesota Tax Ct., 29 November 2010).].
655. We don't approve of the way the government is spending our tax money. It would be better if our economy would collapse than to try to save the World Bank or the IMF [Matter of Anonymous, Dkt. No. 21375, Idaho State Tax Comm. (8 June 2009).].
656. "The people that would have any information regarding this ridiculous tax issue are my grandparents and father. None of which will return my phone calls or help me find a way to prove that I don’t owe any money. I have no clue how to get a hold of any paperwork that will prove my point. … I am a full time student paying for school out of my own pocket. This is a hugely unnecessary headache in my life." [Matter of Anonymous, Dkt. No. 21275, Idaho State Tax Comm. (12 June 2009).].
657. The money garnished from my paycheck should have been be applied towards my taxes that year (it was applied towards prior years' delinquent taxes) [Dillard v. State, Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. NC. 10-514 (18 November 2010).].
658. In the business owner's previous enterprises he was not significantly involved in collecting sales taxes or filing the tax returns with the Department of Revenue, and his misunderstanding was compounded by his medical condition, which made it difficult for him to understand things that would be readily apparent to others [Matter of Anonymous, Washington Dept. of Revenue, Determination No. 10-0125, 29 WTD 90 (21 April 2010).].
659. My accountant had to curtail his practice because his mother died, and then I had to take care of my ailing father, and I was stressed by the terrorist attack on September 11, 2001 [Verduzco v. Commissioner, T.C. Memo. 2010-278].
660. We shouldn't be liable for the Service Tax because we operate on a "No Profit, No Loss" basis and only recover the cost from the licensees (the Service Tax is imposed irrespective of profit or loss) [M/S RPG Enterprises Ltd v. Commissioner of Central Excise, 2008-TIOL-643-CESTAT (W. Zonal Bench, Mumbai, 4 April 2008).].
661. I had health problems, and, after the federal government suddenly shut down my employer due to questionable business practices at the end of 1998, I was busy looking for work but there were no jobs available. My tax obligations were not a priority as I was focused on trying to survive [Matter of the Appeal of Boxer, California State Board of Equalization, No. 474201, 13 July 2010).].
03 October, 2010
Tax Excuses 616 - 633
616. I had a problem with my Internet Explorer [Simon Levin v. Her Majesty's Revenue & Customs (No. TC00518, [2010] UKFTT 217 (TC), Appeal number Appeal number TC/2009/14793, 1st Tier Tribunal, Northampton, 13 May 2010).].
617. We didn't pay our taxes because of the financial and mental strain caused by our son's manic depressive schizophrenic condition. He was treated by more than five psychiatrists; lived with us in our Lake Shore Drive condominium; is extremely annoying, irritating, and dangerous; physically attacked his mother and grandmother; was hospitalized twice; cannot be left alone; stole and pawned jewelry from family members; and generally made our lives a living nightmare. [In re Carlson, 126 F.3d 915 (7th Cir. 1997), cert. denied 523 U.S. 1060 (1998).].
618. My income understatement penalty should be mitigated because I came to this country as an immigrant (he had been there nearly 30 years and had several successful businesses) [Income Tax Case No. 1540, 54 SATC 400 (T) (Transvaal Special Court) (Case No 9158, Transvaal Special Court, South Africa, 1991).].
619. "The first three grounds of appeal were to the effect that during the liberation struggle 1975 to 1980 appellants were ordered by the Zanla forces not to pay taxes because tax revenue was utilised by the government of the day to prosecute the war against the liberation forces. That, being sympathetic towards the liberation forces, appellants had during the aforesaid period not only made substantial donations to them but had also deliberately under-declared their respective taxable incomes." [Income Tax Case No. 1423, 49 SATC 85 (Z) (Zimbabwe Special Court, 1986).].
620. "Petitioner wrote a letter to Respondent asking that all penalties and interest on the outstanding balance be waived. The basis of the request was that only one officer of the corporation had actual knowledge of the unpaid fuel taxes." [Fuel Mart, Inc. v. Department of Revenue, DOR Case No. 10-05 FOF, DOAH Case No. 10-0425 (Florida Div. Admin. Hearings, 28 May 2010).
621. " The petition in this case had attached a form containing a hodgepodge of frivolous, irrelevant, and spurious arguments common to petitions following a program of tax defiance. … The form sets out a general denial of tax liability; a claim of various deductions and exemptions and filing status other than allowed in the statutory notice; an assertion that the figures used 'stem from illegal immigrants' using the taxpayer's Social Security number; an allegation that penalties should be waived because 'the Internal Revenue Code is so complex and confusing'; a claim for credit 'for the illegal telephone excise tax for each year'; a claim of deductible expenses of tax preparation and advice on filing (even though no return was filed); and a claimed lack of records justifying reconstruction and estimates." [Jensen v. Commissioner, T.C. Memo. 2010-143.].
622. I stopped all withholding for my income taxes because I believed that it was a way to increase my income so that I could pay my personal obligations [Department of Health v. Silva, New York City Office of Admin. Trials & Hrgs., Index No. OATH 250/98 (23 September 1997), aff'd NYC Civ. Serv. Comm’n Item No. CD 99-43-SA (May 4, 1999).].
623. The IRS's wrongful assessment of taxes on me for the year 2000 forced me to withdraw from my IRA in 2004 to get the IRS off my back, so I shouldn't be liable for the IRA early withdrawal penalty tax (he didn't file a tax return for the year 2000) [Amesbury v. Commissioner, T.C. Memo. 2010-148.].
624. I should be taxed as a nonresident salaried employee and not as a partner. I wasn't really a partner of the firm; they just listed me as a partner so that I would attract more clients to the firm [Heller v. State Tax Commission, 116 A.D.2d 901, 498 N.Y.S.2d 211 (3rd Dept. 1986).].
625. "I commuted to [state B] for the last six months of 1992 to secure employment. Between job hunting prior to that, long distance commuting and out of state employment, I had little, if any, time to finalize a 1991return." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-04658 (29 April 2010).].
626. My attorney advised me to not file my tax returns until my ex-wife's child's paternity issues were resolved, so that she couldn't have the refund confiscated to cover unpaid child support for a child who wasn't mine [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-07091 (17 May 2010).].
627. I have a mental block with regard to filing taxes, which has caused me to procrastinate when it comes to filing my tax returns. [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-05056 (7 July 2010).].
628. I shouldn't have to pay income tax on the amounts that were withheld from my unemployment compensation to offset what I owed to the Connecticut Department of Labor [Francis v. Commissioner, T.C. Memo. 2010-161.].
629. I couldn't file my tax returns because of my mother's death in September 2004 and a major financial setback in connection with my company during 2005 (he failed to file his tax returns for 2003, 2004 and 2005) [Bream v. Commissioner, T.C. Summ. Op. 2010-110.].
630. Maine shouldn't be able to collect its judgment against me for my state income taxes from when I lived in Maine because I now live in Florida, and Florida doesn't have an income tax [State of Maine v. Steven M. Hanson, 36 So. 3d 879 (Fla.App, 5th Dist., 2010).].
631. The Business Privilege Tax return may have been filed late, but it was filed within 15 days of the due date so there should be no lateness penalty (it was filed 16 days late, and returns for three previous years were delinquent) [Ken McNeill's Auto Repair, Inc. v. State, Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. BIT. 10-341 (28 July 2010).].
632. I didn't file my tax returns because of the legal, emotional and physical trouble I experienced from husband's prosecution and incarceration, and from our divorce [Jones v. Commissioner, T.C. Summ. Op. 2010-139.].
633. "Plaintiff testified that, even though he acknowledges that he had the authority and responsibility to pay the amount of state income tax withheld on behalf of each of Michael's Holding Company employees, he was not in a "position to pay" the monies to the Oregon Department of Revenue because the company was repeatedly sabotaged by current and ex-employees who incurred substantial cost overruns and led the company and employees into protracted litigation." [Uri v. Department of Revenue, 2010 Ore. Tax LEXIS 234 (Oregon Tax Ct., 2010).
617. We didn't pay our taxes because of the financial and mental strain caused by our son's manic depressive schizophrenic condition. He was treated by more than five psychiatrists; lived with us in our Lake Shore Drive condominium; is extremely annoying, irritating, and dangerous; physically attacked his mother and grandmother; was hospitalized twice; cannot be left alone; stole and pawned jewelry from family members; and generally made our lives a living nightmare. [In re Carlson, 126 F.3d 915 (7th Cir. 1997), cert. denied 523 U.S. 1060 (1998).].
618. My income understatement penalty should be mitigated because I came to this country as an immigrant (he had been there nearly 30 years and had several successful businesses) [Income Tax Case No. 1540, 54 SATC 400 (T) (Transvaal Special Court) (Case No 9158, Transvaal Special Court, South Africa, 1991).].
619. "The first three grounds of appeal were to the effect that during the liberation struggle 1975 to 1980 appellants were ordered by the Zanla forces not to pay taxes because tax revenue was utilised by the government of the day to prosecute the war against the liberation forces. That, being sympathetic towards the liberation forces, appellants had during the aforesaid period not only made substantial donations to them but had also deliberately under-declared their respective taxable incomes." [Income Tax Case No. 1423, 49 SATC 85 (Z) (Zimbabwe Special Court, 1986).].
620. "Petitioner wrote a letter to Respondent asking that all penalties and interest on the outstanding balance be waived. The basis of the request was that only one officer of the corporation had actual knowledge of the unpaid fuel taxes." [Fuel Mart, Inc. v. Department of Revenue, DOR Case No. 10-05 FOF, DOAH Case No. 10-0425 (Florida Div. Admin. Hearings, 28 May 2010).
621. " The petition in this case had attached a form containing a hodgepodge of frivolous, irrelevant, and spurious arguments common to petitions following a program of tax defiance. … The form sets out a general denial of tax liability; a claim of various deductions and exemptions and filing status other than allowed in the statutory notice; an assertion that the figures used 'stem from illegal immigrants' using the taxpayer's Social Security number; an allegation that penalties should be waived because 'the Internal Revenue Code is so complex and confusing'; a claim for credit 'for the illegal telephone excise tax for each year'; a claim of deductible expenses of tax preparation and advice on filing (even though no return was filed); and a claimed lack of records justifying reconstruction and estimates." [Jensen v. Commissioner, T.C. Memo. 2010-143.].
622. I stopped all withholding for my income taxes because I believed that it was a way to increase my income so that I could pay my personal obligations [Department of Health v. Silva, New York City Office of Admin. Trials & Hrgs., Index No. OATH 250/98 (23 September 1997), aff'd NYC Civ. Serv. Comm’n Item No. CD 99-43-SA (May 4, 1999).].
623. The IRS's wrongful assessment of taxes on me for the year 2000 forced me to withdraw from my IRA in 2004 to get the IRS off my back, so I shouldn't be liable for the IRA early withdrawal penalty tax (he didn't file a tax return for the year 2000) [Amesbury v. Commissioner, T.C. Memo. 2010-148.].
624. I should be taxed as a nonresident salaried employee and not as a partner. I wasn't really a partner of the firm; they just listed me as a partner so that I would attract more clients to the firm [Heller v. State Tax Commission, 116 A.D.2d 901, 498 N.Y.S.2d 211 (3rd Dept. 1986).].
625. "I commuted to [state B] for the last six months of 1992 to secure employment. Between job hunting prior to that, long distance commuting and out of state employment, I had little, if any, time to finalize a 1991return." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-04658 (29 April 2010).].
626. My attorney advised me to not file my tax returns until my ex-wife's child's paternity issues were resolved, so that she couldn't have the refund confiscated to cover unpaid child support for a child who wasn't mine [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-07091 (17 May 2010).].
627. I have a mental block with regard to filing taxes, which has caused me to procrastinate when it comes to filing my tax returns. [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-05056 (7 July 2010).].
628. I shouldn't have to pay income tax on the amounts that were withheld from my unemployment compensation to offset what I owed to the Connecticut Department of Labor [Francis v. Commissioner, T.C. Memo. 2010-161.].
629. I couldn't file my tax returns because of my mother's death in September 2004 and a major financial setback in connection with my company during 2005 (he failed to file his tax returns for 2003, 2004 and 2005) [Bream v. Commissioner, T.C. Summ. Op. 2010-110.].
630. Maine shouldn't be able to collect its judgment against me for my state income taxes from when I lived in Maine because I now live in Florida, and Florida doesn't have an income tax [State of Maine v. Steven M. Hanson, 36 So. 3d 879 (Fla.App, 5th Dist., 2010).].
631. The Business Privilege Tax return may have been filed late, but it was filed within 15 days of the due date so there should be no lateness penalty (it was filed 16 days late, and returns for three previous years were delinquent) [Ken McNeill's Auto Repair, Inc. v. State, Alabama Dept. of Revenue, Admin. Law Div., Dkt. No. BIT. 10-341 (28 July 2010).].
632. I didn't file my tax returns because of the legal, emotional and physical trouble I experienced from husband's prosecution and incarceration, and from our divorce [Jones v. Commissioner, T.C. Summ. Op. 2010-139.].
633. "Plaintiff testified that, even though he acknowledges that he had the authority and responsibility to pay the amount of state income tax withheld on behalf of each of Michael's Holding Company employees, he was not in a "position to pay" the monies to the Oregon Department of Revenue because the company was repeatedly sabotaged by current and ex-employees who incurred substantial cost overruns and led the company and employees into protracted litigation." [Uri v. Department of Revenue, 2010 Ore. Tax LEXIS 234 (Oregon Tax Ct., 2010).
28 May, 2010
Tax Excuses 591 - 615
591. "As mentioned in our letter dated 14 January 2009 (enclosed for your easy reference), the accounting team of our [a named country] office just started to handle the set of account of [a named] business in mid-2007. As the new team is new to our [named] business, it took us extra time to co-ordinate and obtain all necessary information for issuance of audited financial statements for 2007. Please be advised that we did the return filing immediately after the issuance of audited financial statements for 2007 and we have no intention to delay the return filing or tax payment. Given our clean past record and we settled the tax payment on-time, we sincerely hope that the penalty of HK$20,000 for late submission of the [appellant’s] return for the year of assessment 2007/08 could be waived." (The company had been let off without a penalty on a prior late filing.) [Hong Kong Inland Revenue Board of Review Case No. D15/09 (25 May 2009).].
592. I didn't authorize the IRS to disclose any of my Federal income tax information to the Illinois Department of Revenue (he failed to file his Illinois State Income Tax return). [Depatment of Revenue v. John Doe, Illinois Dept. of Revenue Office of Admin. Hearings, Dkt. No. IT 09-7 (15 July 2009).].
593. "Respondent also argues that OPR’s complaint should be dismissed because of actions taken by a Revenue Officer for the IRS. Respondent alleges that the Revenue Officer referred his failure to timely file his tax returns to OPR because the Revenue Officer was unhappy with Respondent’s zealous representation of a client." (The Respondent was a partner in a large Boston law firm who had formerly been an attorney for the IRS and who had late filed or nonfiled all of his personal income tax returns for tax years 2000 through 2005. He was suspended from practice before the IRS.) [Director, Office of Professional Responsibility v. Kevin Kilduff, IRS OPR Complaint No. 2008-12, Office of Chief Counsel Appellate Authority (20 January 2010).]
594. The Department of Taxation & Finance's audit methodology was not reasonably calculated to reflect the proper tax due, but rather to achieve the highest possible tax due (the restaurant didn't produce sales records, and the manager refused to allow an observation) [Matter of Huaquechula Restaurant Corporation, New York State Div. of Tax Appeals, Docket Nos. DTA 822285 & 822298, 25 March 2010.].
595. I didn't file my tax returns on time because my husband threatened to leave me if I did, and this would have caused me financial injury. My husband promised to file the returns but then told me that we didn't need to because there was no tax due [Wolfgram v. Commissioner, T.C. Memo. 2010-69.].
596. The IRS shouldn't levy on my delinquent taxes because the IRS Hearing Officer at the Collection Due Process hearing was not properly appointed by the President and confirmed by the Senate [Petition for Writ of Certiorari, Michael Cornwell & Hilary Iker v. Commissioner, Docket No. 09-704, U.S. Supreme Court (9 December 2009), cert denied ___ U.S. ___, 130 S. Ct. 1301, 175 L. Ed. 2d 1076 (2010).].
597. "Citing a Wikipedia article, Ms. Lam essentially argues that, like Secretary Geithner, she used TurboTax, resulting in mistakes on her taxes." [Lam v. Commissioner, T.C. Memo. 2010-82.].
598. I did not consider myself to be in "business" and therefore did not think I was required to maintain records to account for the gross receipts from my E-bay sales (she was an IRS Revenue Officer whose unreported Ebay income exceeded $9,000 in 2004 and $18,000 in 2005) [Andrea Fabiana Orellana v. Commissioner, T.C. Summ. Op. 2010-51.].
599. Tax returns have never been important to me, so I never filed them [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-05883 (23 March 2010).].
600. "Applicant has not made any payments to the IRS since 2000 and attributes any potential tax liability to the IRS’ failure to properly calculate the differences in the cost of certain public stock he sold and what he sold the stock for following the collapse of the company in the wake of the terrorist attacks of September 2001." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-00918 (29 March 2010).].
601. I broke my ankle and had surgery in March 2001, and then got sidetracked from filing. "I will say that it was like an ostrich with the head in the sand. I felt overwhelmed." … "I was so overwhelmed with my illness and the real estate market wasn’t doing well." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-11885 (30 March 2010).].
602. My accountant filed my return late, and I also was severely disabled following back surgeries in 2005 and 2006 (the tax return was due on 1 May 2004 and the taxpayer did not provide the accountant with any tax information until 2006) [Virginia Tax Commissioner, Ruling No. 10-38 (8 April 2010).].
603. My parents' experience in fleeing Nazi Germany drove me to hide more than $10 million in secret Swiss bank accounts and evade the taxes on them [Curt Anderson, "Tax Evader who Blamed Holocaust gets 10 Months," AP, 23 April 2010, 07:50 PM GMT [United States vs. Jack Barouh, Case No. 10-CR-20034-AJ (SD FL)].].
604. My restaurant was a very rough neighborhood and if I had tried to collect the sales tax then people would have assaulted me [Matter of Royal Fried Chicken of New York, Inc. and Mohammed S. Uddin, New York State Div. of Tax Appeals, Docket Nos. 822557 & 822601 (29 April 2010).].
605. My wife, my daughter and I all had mental health problems, and I had trouble controlling my anger [McKenna v. Commissioner, T.C. Summary Op. 2010-58.].
606. I didn't withhold any employee payroll taxes because the people working at my cafe are relatives, not employees [Livingston v. Department of Consumer Protection, 120 Conn. App. 92 (Conn.App. 2010).].
607: "I regret to tell you that I forget to state my whole income. To be honest, I have no intention to hide by understating my income. The reason is that I didn’t get familiar with this application. In the application, I had ticked the 'Yes' box of part 4.1(5) of 'My employer(s) paid Salaries Tax for me' but didn’t know to fill in the amount of 'Salaries tax paid by the employer' of part 4.1(1) and thus leads to misunderstanding." (He had proffered similar excuses in 4 prior years for similar omissions, and had been assessed the Penalty Tax each time) [Hong Kong Inland Revenue Board of Review Case No. D42/09 (18 December 2009).].
608. After completing my federal tax return form, I determined that I owed taxes and did not have the money to pay them, so I decided not to file my income tax returns. ." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-05242 (16 April 2010).].
609. My continuing tax delinquencies were due to a memory failure from my brain aneurysm [Matter of Ronald A. Goldman, 71 A.D.3d 9, 892 N.Y.S.2d 324 (1st Dept. 2009).].
610. I did pro bono legal work for death row inmates, spent lots of time and money as a trustee of Skidmore College, and suffered from an Obsessive Compulsive Personality Disorder that caused me to attend to my work compulsively, but caused me to be careless about various personal matters, including those relating to health and finances [Matter of John J. P. Howley, 70 A.D.3d 218, 893 N.Y.S.2d 1 (1st Dept. 2009).].
611. The Notice of Deficiency issued by the Oregon Department of Revenue was invalid because it did not have a hand signature on it [Department of Revenue v. Faris, 345 Ore. 97, 190 P.3d 364 (2008).].
612. When my father passed away in 2004, I traveled to Philadelphia on several occasions to assist my mother, who had difficulty dealing with the tragedy (The tax return was due until April 15, 2005, and he could have gotten an extension. The tax return was not filed until October 2006). [Harris v. Commissioner, T.C. Summary Op. 2010-63.].
613. The solicitor who had been retained by the company to administer its operations and complete the VAT returns failed to do so and was an alcoholic, and the portacabins from which the company operated were burglarized and the computers containing the VAT information details were stolen [Pic Build Construction, Ltd. v. Her Majesty's Revenue & Customs (No. TC00460, [2010] UKFTT 154 (TC), Appeal number TC/2009/13770, 1st Tier Tribunal, Liverpool, 9 April 2010).].
614. "Cash flow is critical to small business and when customers and contractors discover you are away and unable to chase them, more often than not promised payments fail to arrive or are delayed. We simply could not release funds until we had confirmed we had been paid." [Shaun Batchelor Electrical Contractors, Ltd. v. Her Majesty's Revenue & Customs (No. TC00500, [2010] UKFTT 198 (TC), Appeal number TC/2009/15500, 1st Tier Tribunal, Leeds, 5 May 2010).].
615. I filed my 2003, 2004 and 2005 tax returns late because I was in several accidents that caused injuries and a prolonged rehabilitation and recovery (on each return she claimed car and travel expenses for her business, thus implicitly stating that she was able to work) [Heller v. Commissioner, T.C. Memo. 2010-116.].
592. I didn't authorize the IRS to disclose any of my Federal income tax information to the Illinois Department of Revenue (he failed to file his Illinois State Income Tax return). [Depatment of Revenue v. John Doe, Illinois Dept. of Revenue Office of Admin. Hearings, Dkt. No. IT 09-7 (15 July 2009).].
593. "Respondent also argues that OPR’s complaint should be dismissed because of actions taken by a Revenue Officer for the IRS. Respondent alleges that the Revenue Officer referred his failure to timely file his tax returns to OPR because the Revenue Officer was unhappy with Respondent’s zealous representation of a client." (The Respondent was a partner in a large Boston law firm who had formerly been an attorney for the IRS and who had late filed or nonfiled all of his personal income tax returns for tax years 2000 through 2005. He was suspended from practice before the IRS.) [Director, Office of Professional Responsibility v. Kevin Kilduff, IRS OPR Complaint No. 2008-12, Office of Chief Counsel Appellate Authority (20 January 2010).]
594. The Department of Taxation & Finance's audit methodology was not reasonably calculated to reflect the proper tax due, but rather to achieve the highest possible tax due (the restaurant didn't produce sales records, and the manager refused to allow an observation) [Matter of Huaquechula Restaurant Corporation, New York State Div. of Tax Appeals, Docket Nos. DTA 822285 & 822298, 25 March 2010.].
595. I didn't file my tax returns on time because my husband threatened to leave me if I did, and this would have caused me financial injury. My husband promised to file the returns but then told me that we didn't need to because there was no tax due [Wolfgram v. Commissioner, T.C. Memo. 2010-69.].
596. The IRS shouldn't levy on my delinquent taxes because the IRS Hearing Officer at the Collection Due Process hearing was not properly appointed by the President and confirmed by the Senate [Petition for Writ of Certiorari, Michael Cornwell & Hilary Iker v. Commissioner, Docket No. 09-704, U.S. Supreme Court (9 December 2009), cert denied ___ U.S. ___, 130 S. Ct. 1301, 175 L. Ed. 2d 1076 (2010).].
597. "Citing a Wikipedia article, Ms. Lam essentially argues that, like Secretary Geithner, she used TurboTax, resulting in mistakes on her taxes." [Lam v. Commissioner, T.C. Memo. 2010-82.].
598. I did not consider myself to be in "business" and therefore did not think I was required to maintain records to account for the gross receipts from my E-bay sales (she was an IRS Revenue Officer whose unreported Ebay income exceeded $9,000 in 2004 and $18,000 in 2005) [Andrea Fabiana Orellana v. Commissioner, T.C. Summ. Op. 2010-51.].
599. Tax returns have never been important to me, so I never filed them [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-05883 (23 March 2010).].
600. "Applicant has not made any payments to the IRS since 2000 and attributes any potential tax liability to the IRS’ failure to properly calculate the differences in the cost of certain public stock he sold and what he sold the stock for following the collapse of the company in the wake of the terrorist attacks of September 2001." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-00918 (29 March 2010).].
601. I broke my ankle and had surgery in March 2001, and then got sidetracked from filing. "I will say that it was like an ostrich with the head in the sand. I felt overwhelmed." … "I was so overwhelmed with my illness and the real estate market wasn’t doing well." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 08-11885 (30 March 2010).].
602. My accountant filed my return late, and I also was severely disabled following back surgeries in 2005 and 2006 (the tax return was due on 1 May 2004 and the taxpayer did not provide the accountant with any tax information until 2006) [Virginia Tax Commissioner, Ruling No. 10-38 (8 April 2010).].
603. My parents' experience in fleeing Nazi Germany drove me to hide more than $10 million in secret Swiss bank accounts and evade the taxes on them [Curt Anderson, "Tax Evader who Blamed Holocaust gets 10 Months," AP, 23 April 2010, 07:50 PM GMT [United States vs. Jack Barouh, Case No. 10-CR-20034-AJ (SD FL)].].
604. My restaurant was a very rough neighborhood and if I had tried to collect the sales tax then people would have assaulted me [Matter of Royal Fried Chicken of New York, Inc. and Mohammed S. Uddin, New York State Div. of Tax Appeals, Docket Nos. 822557 & 822601 (29 April 2010).].
605. My wife, my daughter and I all had mental health problems, and I had trouble controlling my anger [McKenna v. Commissioner, T.C. Summary Op. 2010-58.].
606. I didn't withhold any employee payroll taxes because the people working at my cafe are relatives, not employees [Livingston v. Department of Consumer Protection, 120 Conn. App. 92 (Conn.App. 2010).].
607: "I regret to tell you that I forget to state my whole income. To be honest, I have no intention to hide by understating my income. The reason is that I didn’t get familiar with this application. In the application, I had ticked the 'Yes' box of part 4.1(5) of 'My employer(s) paid Salaries Tax for me' but didn’t know to fill in the amount of 'Salaries tax paid by the employer' of part 4.1(1) and thus leads to misunderstanding." (He had proffered similar excuses in 4 prior years for similar omissions, and had been assessed the Penalty Tax each time) [Hong Kong Inland Revenue Board of Review Case No. D42/09 (18 December 2009).].
608. After completing my federal tax return form, I determined that I owed taxes and did not have the money to pay them, so I decided not to file my income tax returns. ." [Matter of Anonymous, Defense Office of Hearings & Appeals, ISCR Case No. 09-05242 (16 April 2010).].
609. My continuing tax delinquencies were due to a memory failure from my brain aneurysm [Matter of Ronald A. Goldman, 71 A.D.3d 9, 892 N.Y.S.2d 324 (1st Dept. 2009).].
610. I did pro bono legal work for death row inmates, spent lots of time and money as a trustee of Skidmore College, and suffered from an Obsessive Compulsive Personality Disorder that caused me to attend to my work compulsively, but caused me to be careless about various personal matters, including those relating to health and finances [Matter of John J. P. Howley, 70 A.D.3d 218, 893 N.Y.S.2d 1 (1st Dept. 2009).].
611. The Notice of Deficiency issued by the Oregon Department of Revenue was invalid because it did not have a hand signature on it [Department of Revenue v. Faris, 345 Ore. 97, 190 P.3d 364 (2008).].
612. When my father passed away in 2004, I traveled to Philadelphia on several occasions to assist my mother, who had difficulty dealing with the tragedy (The tax return was due until April 15, 2005, and he could have gotten an extension. The tax return was not filed until October 2006). [Harris v. Commissioner, T.C. Summary Op. 2010-63.].
613. The solicitor who had been retained by the company to administer its operations and complete the VAT returns failed to do so and was an alcoholic, and the portacabins from which the company operated were burglarized and the computers containing the VAT information details were stolen [Pic Build Construction, Ltd. v. Her Majesty's Revenue & Customs (No. TC00460, [2010] UKFTT 154 (TC), Appeal number TC/2009/13770, 1st Tier Tribunal, Liverpool, 9 April 2010).].
614. "Cash flow is critical to small business and when customers and contractors discover you are away and unable to chase them, more often than not promised payments fail to arrive or are delayed. We simply could not release funds until we had confirmed we had been paid." [Shaun Batchelor Electrical Contractors, Ltd. v. Her Majesty's Revenue & Customs (No. TC00500, [2010] UKFTT 198 (TC), Appeal number TC/2009/15500, 1st Tier Tribunal, Leeds, 5 May 2010).].
615. I filed my 2003, 2004 and 2005 tax returns late because I was in several accidents that caused injuries and a prolonged rehabilitation and recovery (on each return she claimed car and travel expenses for her business, thus implicitly stating that she was able to work) [Heller v. Commissioner, T.C. Memo. 2010-116.].
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