T.C. Sum m ary Opi ni on 20 15 -1 0 UNITED STAT ES TAX COURT JOSHUA J . STEBBINS, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 25 70 8- 13 S. Fi le d F eb ru ary 11 , 20 15 . Jo sh uaJ. St eb bi ns , pro se. Ri ch ardJ. Has se br oc k, fo r res po nd en t.

SUMM ARY OPINION FOLEY, Jud ge : Th is cas e was he ardpu rs uantto th e p ro vi si on s o f se ct io n 74 63 of the Int ern al Rev enue Co de ineffec t wh enth e p et it io n was fil ed . 1

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 ctrel at in g t o the y ears inis su e, an d a ll Ru le refe ren ces are t o th e Tax Co urt Ru le s o f Prac ti ce an d P ro cedur e.-2 -

Purs uantto sec ti on 74 63 (b ), th e d eci si on to be en te redis no t re vi ewab le by any othe r co urt, an d thi s o pi ni onsh al l n otbe tre at edas p rece de ntforan y othe r cas e. Afte r co nc es si on s, the is su es forde ci si on are wh ethe r pe ti ti on er m ay off se t h is ne t se lf- em pl oym en t earn in gs with ane t o pe rat in g l os s (NOL) carry ov er an d wh ethe r pe ti ti on er i s l iabl e fo r ad di ti on s t o t ax pu rs uantto sec ti on 66 51 (a)( 1) . Bac kg ro un d Dur in g 2 00 7, 2 00 8, an d 2 00 9 p et it io ne r op erat ed“ Asl anW or ldwid e” (Asl an ), a so le pro pr ie to rs hi p. Pe ti ti on er i nc urredan$8 1,9 57 NOL relat in g t o 20 07 an d re po rte d a$9 1,8 12 ne t l os s fr om sel f-em pl oym en t re lati ng to 20 08 . Pet it io ne r un ti m el y

fil edhi s 2 00 8 and20 09 Fo rm s 1 04 0, U.S. In di vi du al Inc om e Tax Returns . On Au gu st1, 2 01 3, re sp on de ntsen t p et it io ne r a n ot ic e o f de fic ie nc y rel at in g to 20 08 . Res po nd en t d et erm in edth atpe ti ti on er was li ab le fora $3 7,2 19 in co m e ta x d efi ci en cy , a $1 6,2 28 sel f-em pl oym en t t ax de fic ie nc y , anda $9 ,30 5 s ect io n 66 51 (a)( 1) ad di ti on to tax . Res po nd en t fu rth er d et erm in edth atpe ti ti on er un de rrep orte d g ro ss rece ip ts , un de rrep orte d n etsel f-em pl oym en t ea rn in gs , and was no t en ti tl edto cert ai n d educ ti on s. On Au gu st1, 2 01 3, re sp on de ntsen t p et it io ne r an d h is sp ou se a no ti ce o f de fic ie nc y

rel at in g t o 2 00 9. Re sp on de ntde te rm in edth atth ey were l iabl e fo r a-3 -

$2 5,0 33 in co m e ta x d efi ci en cy an d a$1 ,12 5 s ect io n 6 65 1( a)(1 ) ad di ti on to tax . Pet it io ne r, whi le res id in g i n Oh io , ti m el y fil eda pe ti ti on with the Co urt. Dis cu ss io n An NOL is th e ex ces s o f al lo wab le de du ct io ns ov er g ro ss in co m e. See s ec. 17 2( c). Sec ti on17 2( a) al lo ws anNOL deduc ti on forth e ag gr eg at e o f NOL carry ba ck s an d c arryov ers . Peti ti on er co nt en ds th athi s NOL carry ov er re la ti ng to 20 07 m ay off se t h is 20 08 ne t s el f-em

pl oym en t ea rn in gs . W e d is ag ree. Se ct io n 14 02 (a)( 4) pro vi de s tha t i n d et erm in in g n etsel f-em pl oym en t ea rn in gs , th e de du ct io n fo r ne t o pe rat in g l os se s p ro vi de d i n s ect io n 1 72 sh al l n otbe all owe d. See s ec. 1 40 2( a); sec s. 1 .14 02 (a)- 1, 1 .14 02 (a)- 7, In co m e Tax Reg s. Sect io n 6 65 1( a)(1 ) pr ov id es th ata ta xp ay er s ha ll be subjec t t o an a dd it io n t o ta x fo r fai lu re t o t im el y

fil e a return u nl es s s uc h fa il ur e was du e to reas on ab le cau se an d n otwil lfu l n eg le ct . Res po nd en t b ears , andha s m et , th e b ur de n o f pr oduc ti on rel at in g t o the sec ti on66 51 (a)( 1) ad di ti on s t o t ax an d h as est ab li sh ed th atpe ti ti on er fa il edto ti m el y fil e h is 20 08 an d 2 00 9 re tu rn s. See sec . 74 91 (c); Hig be e v . Comm is si on er, 1 16 T.C. 43 8, 4 46 (20 01 ). Pet it io ne r’s fai lu re t o t im el y fil e returns was the res ul t o f wil lfu l n eg le ctan d n otreas on ab le cau se . Acco rd in gl y , pet it io ne r is li ab le forsec ti on 66 51 (a)( 1) ad di ti on s t o t ax rel at in g t o 20 08 an d 2 00 9.-4 -

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 , Deci si on wil l b e en te red un de r Ru le 15 5.