T.C. Mem o. 2 01 4- 28 UNITED STAT ES TAX COURT DAVID K. WINTERROTH, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 13 83 3- 12 . Fi le d F eb ru ary 12 , 20 14 . Dav idK. W in te rro th , pro se. FredEdwardGreen , Jr., fo r res po nd en t. MEMORANDUM FINDINGS OF FACT AND OPINION FOLEY, Jud ge : Th e is su es for de ci si on are wh ethe r pe ti ti on er i s l iabl e fo r in co m e ta x d efi ci en ci es rel at in g t o 2 00 8, 2 00 9, an d 2 01 0 (years inis su e);-2 -

[* 2] ad di ti on s t o t ax purs uantto sec ti on s 6 65 1( a)(1 ) an d (2 ) an d 6 65 4; an d a se ct io n 6 67 3 p en al ty. 1 FINDINGS OF FACT In20 08 , 20 09 , and20 10 pe ti ti on er re cei ve d wag es fro m Rep ub li c Servi ces of $5 7,5 19 , $5 8,5 93 , and$5 8,4 79 , res pe ct iv el y . In 2 00 9, p et it io ne r rec ei ve d an in di vi du al ret ire m en t ac co un t (I RA) d is tri bu ti on of $ 2,0 00 . Peti ti on er d idno t fi le Fed eral in co m e ta x re tu rn s o r pa y tax es rel at in g t o the y ears inis su e, an d res po nd en t p rep aredsubs ti tu te s fo r returns (SFRs ) rel at in g t o the se y ears . On Feb ru ary 27 , 20 12 , res po nd en t s en t p et it io ne r a n ot ic e o f de fic ie nc y an d de te rm in edde fic ie nc ie s o f $8 ,48 8, $ 8,7 94 , and$8 ,06 3 re la ti ng to 20 08 , 20 09 , and 20 10 , res pe ct iv el y . In ad di ti on , res po nd en t d et erm in edth atpe ti ti on er was li ab le fo r se ct io n 6 65 1( a)(1 ) an d (2 ) ad di ti on s t o t ax rel at in g t o the y ears inis su e an d se ct io n 6 65 4 a dd it io ns to tax rel at in g t o 2 00 8 and20 09 . On May 31 , 20 12 , pe ti ti on er, wh il e res id in g i n Nev ad a, ti m el y fil eda pe ti ti onwith the Co urt. At tri al , onOcto be r 30 , 20 13 , res po nd en t m ov edforth e im po si ti onof asec ti on 66 73 pe na lty . Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o the Int ern al 1 Rev enue Co de ineffe ctdu rin g the y ears inis su e, an d a ll Ru le refe ren ces are t o the Tax Co urt Ru le s o f Prac ti ce an d P ro cedur e.-3 -

[* 3] OPINION Pet it io ne r co nt en ds th athe ha s n o F ed eral in co m e ta x l iabi li ty butadm it s th athe rece iv edfro m

Rep ub li c Servi ces co m

pe ns at io n o f $5 7,5 19 , $5 8,5 93 , and $5 8,4 79 rel at in g t o 2 00 8, 2 00 9, an d 2 01 0, re sp ect iv el y . In a dd it io n, re sp on de nt 2 es tabl is he d tha t p et it io ne r rec ei ve d an IRA di strib ut io n o f $2 ,00 0 re la ti ng to 20 09 . See Weim ers ki rch v. Co m m is si on er, 5 96 F.2d35 8, 3 60 -3 62 (9t h C ir. 1 97 9) (h ol di ng th atth e Co m

mis si on er’s d et erm in at io n re la ti ng to un rep orte d i nc om e is pr es um edco rrec t wh ere i t i s s up po rte d b y a “ m in im al ev id en ti ary fo un da ti on ”), rev ’g 67 T.C. 67 2 (1 97 7) . There fo re, p et it io ne r ha d i nc om e o f $5 7,5 19 , $6 0,5 93 , an d $ 58 ,47 9 re la ti ng to 20 08 , 20 09 , and20 10 , res pe ct iv el y , andwas re qu ire d t o fil e ta x re tu rn s re la ti ng to th es e y ears . See s ecs . 61 (a), 6 01 1( a), 6 01 2( a). Sect io n 6 65 1( a)(1 ) an d (2 ) pr ov id es th ata ta xp ay er s ha ll be li ab le for ad di ti on s t o t ax for

fai lure t o t im el y

fil e a return andfai lu re t o t im el y pay tax , un le ss itis sh own th atsu chfai lu re was du e to reas on ab le cau se an d n otwil lfu l ne gl ect . Purs ua ntto sec ti on 74 91 (c), re sp on de ntbe ars th e b ur de n o f pr oduc ti on Purs ua ntto sec . 74 91 (a), p et it io ne r ha s the bu rd enof p ro of un le ss he 2 in tro du ces cred ib le ev id en ce re la ti ng to th e is su e an d s at is fie s ce rta inothe r requi rem en ts . See Ru le 14 2( a). Ourco nc lu si on s, h owe ve r, are b as edon a pr ep on de ran ce o f th e ev id en ce, an d thu s the all oc at io n o f th e b ur de n o f pr oo f is imm at eri al . See Ma rti n Ic e Cre am Co . v. Co m

m is si on er, 1 10 T.C. 18 9, 2 10 n.1 6 (1 99 8) .-4 -

[* 4] rel at in g t o the se ad di ti on s t o t ax . See Hig be e v . Commis si on er, 1 16 T.C. 43 8, 44 6 (2 00 1) . Res po nd en t es tabl is he d tha t p et it io ne r fai le d t o fi le hi s re tu rn s an d fai le d t o p ay

th e am ou nt s s ho wn o n the 20 08 , 20 09 , and20 10 SFRs . See s ec. 74 91 (c); Whe el er v . Commis si on er, 1 27 T.C. 20 0, 2 06 (20 06 ), aff’d, 5 21 F.3d 12 89 (10 th Cir . 20 08 ). Pet it io ne r’s fai lu re t o t im el y fil e returns an d t im el y

pay hi s ta x l iabi li ti es was the res ul t o f wil lfu l n eg le ctan d n otreas on ab le cau se . See s ec. 66 51 (a)( 1) an d (2 ). Acco rd in gl y , he i s l iabl e fo r th es e ad di ti on s t o t ax . See i d. Res po nd en t fu rth er d et erm in edth atpe ti ti on er was li ab le forsec ti on 66 54 ad di ti on s t o t ax rel at in g t o 2 00 8 and20 09 . To sa ti sf y hi s b ur de n o f pr oduc ti on , res po nd en t m

us t es tabl is h tha t p et it io ne r was requi red , pu rs ua ntto sec ti on 66 54 (d )(1 )(B) , to m ak e an nu al pay m en ts . See Wheel er v . Comm is si on er, 1 27

3 T.C. at 2 11 . Res po nd en t fa il edto est ab li sh th atpe ti ti on er h ada 20 07 tax li ab il ity an d thu s d idno t es tabl is h tha t p et it io ne r was ob li ga te d t o m ak e a 2 00 8 p aym en t. See i d. With res pe ctto 20 09 , ho wev er, res po nd en t m ethi s b ur de n (i .e., he es tabl is he d tha t p et it io ne r di d n otfil e a 2 00 8 re tu rnan d was ob li ga te d, b utfai le d, to m ak e th e 2 00 9 re qu is it e p aym en t). Acc or di ng ly, pe ti ti on er i s n otli ab le fora Purs ua ntto sec . 66 54 (d )(1 )(B) , a requi redan nu al paym en t i s g en eral ly 3 equa l t o the les se r of

90 % of t he tax sh own forth e subjec t t ax ab le y ear ( or , if n o return was fil ed , 90 % of t he tax forsu chy ear) , or 1 00 % of t he tax sh own on th e ta xp ay er’s return fo r th e p rece di ng y ear.-5 -

[* 5] sec ti on 66 54 ad di ti on to tax rel at in g t o 2 00 8 b utis li ab le fora se ct io n 6 65 4 ad di ti on to tax rel at in g t o 2 00 9. Pet it io ne r in st itut edth is pro ceed in g p rimaril y forde lay an d, d es pi te th is Co urt’s warn in gs , per si st en tl y ass ert edfri vo lo us co nt en ti on s. We th eref or e im po se a $1 0,0 00 sec ti on 66 73 (a)( 1) pe na lty . Co nt en ti on s we h av e n otad dr es se d are i rrel ev an t, m oo t, o r m eri tl es s. To re fle ctth e fo reg oi ng , An ap pr op ria te ord er an d de ci si on wil l b e en te red .