Wheeler v. Comm'r of Internal Revenue

5 Analyses of this case by attorneys

  1. The Tax Court in Brief - June 2021 #2

    Freeman LawJason FreemanJune 29, 2021

    To meet his burden of production under section 7491(c) with respect to the section 6651(a)(2) addition to tax, the Commissioner must provide evidence of a tax return. See Wheeler v. Comm’r, 127 T.C. 200, 208-211 (2006). An SFR that meets the requirements of section 6020(b) is treated as the “return” filed by the taxpayer for this purpose.

  2. Tax Court in Brief | Kemegue v. Comm'r | Additions to Tax for Failure to File

    Freeman LawFebruary 20, 2023

    1), (2); Higbee v. Commissioner, 116 T.C. 438, 447 (2001). Whether “reasonable cause” and lack of “willful neglect” exist is a question of fact, and the burden of establishing these facts is on the taxpayer. United States v. Boyle, 469 U.S. 241, 245 (1985).Reasonable Cause. To prove reasonable cause for a failure to timely file, the taxpayer must show that he or she exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time. Crocker v. Commissioner, 92 T.C. 899, 913 (1989); Treas. Reg. § 301.6651-1(c)(1). A taxpayer may have reasonable cause for failure to timely file a return where he or she experiences an illness or incapacity that prevents him or her from filing the return. Boyle, 469 U.S. at 248 n.6; Jordan v. Commissioner, T.C. Memo. 2005-266. When a taxpayer has not filed a return, the section 6651(a)(2) addition to tax may not be imposed unless the IRS has prepared a substitute for return. See Wheeler v. Commissioner, 127 T.C. 200, 210 (2006), aff’d, 521 F.3d 1289 (10th Cir. 2008).Insights: To show reasonable cause for failure to file a return, it is probably best for the healthy and not-infirmed taxpayer not to present evidence that the taxpayer was traveling across the country and trying to start a business, instead of filing a timely federal income tax return.[View source.]

  3. Tax Court in Brief | Valentine v. Commissioner | Taxability of Military Pension and Disability Payments and Business Expense Substantiation

    Freeman LawMay 6, 2022

    Pensions and retirement allowances constitute gross income unless otherwise excluded by law. at § 61(a)(11); Treas. Reg. § 1.61-11(a). Military retirement pay is pension income within the meaning of section 61(a)(11). Wheeler v. Commissioner, 127 T.C. 200, 205 n.11 (2006), aff’d, 521 F.3d 1289 (10th Cir. 2008). Statutory exclusions from income are narrowly construed, and to benefit from an exclusion, taxpayers must “bring themselves within the clear scope of the exclusion.”

  4. Tax Court in Brief | Metz v. Commissioner | Interplay of Criminal Tax, Civil Tax, and Civil Penalties

    Freeman LawApril 14, 2022

    To meet its burden of production under Section 7491(c) with respect to the Section 6651(a)(2) addition to tax, the Commissioner must provide evidence of a tax return. See Wheeler v. Comm’r, 7 T.C. 200, 208–10 (2006), aff’d, 521 F.3d 1289 (10th Cir. 2008).Except in very limited circumstances, seeR.C. § 6654(e)(3), Section 6654 provides no exception for reasonable cause or lack of willful neglect.Insight:Metz effectively deals with the civil assessments by the IRS against a tax protester.

  5. The Tax Court in Brief - November 2020

    Freeman LawJason FreemanNovember 24, 2020

    The IRS satisfies its burden by producing sufficient evidence to establish that the taxpayer failed to timely file a required return. See Wheeler v. Commissioner, 127 T.C. 200, 207-208 (2006), aff’d, 521 F.3d 1289 (10th Cir. 2008); Higbee v. Commissioner, 116 T.C. at 447. Once the IRS has satisfied its burden of production, the taxpayer has the burden of proving that the lateness was due to reasonable cause and not willful neglect.