T.C. M em o . 2 0 1 9 -1 2 8

UNITED STATES TAX COURT
CLAUDE TATE GEORGE, Pet it i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 2 6 0 45 -1 5
. Fi l edSep t em b er 2 5 , 2 0 1 9
.

P d idn o tm ak e a ret u rn o f i n co m e fo r 2 0 1 3 . Duri ng 2 0 1 3, P recei v eda t ax ab l e p en s i on d i s tri bu t i o n . R m ad e a s ub st itu t e ret u rn fo r P an d d et erm i n eda t ax d efi ci en cy th atwas co m

p u t edb y i n cl ud i n g th e p en s i o n d i s tri b u t i o n i nP's g ro s s i n co m e an db y al lo wi n g h i m

the s t an dardd edu ct i o n an do n e p ers on al ex em p t io nan db y

ad d i n g t o th e i n co m e t ax s o d et erm i n edan ad d i t i o n al 1 0 % t ax fo r p rem atu re d i s tri b u t i on s fro m

a qual i fi edret i rem en tp l an . R al s o d et erm i n ed ad d i ti o n s t o t ax fo r fai li n g t im el y b o th t o fi le a ret u rn an d t o p ay t ax . R h as m o v edfo r s u m

m ary ju d g m en t
. Hel d : Becau s e P d i dn o tfi l e a ret u rn , h e m ay n o t i t em i ze d edu ct i o n s. Hel d , fu rt h er, n o d i s p u te as t o m at eri al fact s n o r wi th res p ectt o ap p l icab l e l eg al p ri n ci pl es . Hel d , fu rt h er, R's m o t i o nwi l l b e g ran t ed
.- 2
-

[* 2 ] Cl au d e Tat e Geo rg e, p ro s e. Ro b ertF. Saal , fo r res p o n d en t
.

M EM ORANDUM OPINION HALPERN, Ju d g e: Res p o n d en td et erm i n eda d efi ci en cy i np et i t i o n er's 2 0 1 3 Fed eral i n co m e t ax o f $ 7 0 ,3 1 8 t o g et h er wi th ad d i t i o n s t o t ax o f $ 6 ,4 5 7 an d $ 2 ,2 9 6 u n d er s ect io n 6 6 5 1 (a)(1 ) an d(2 ), res p ect i v el y . 1 Res po n d en th as m o v edfo r
s u m m ary ad j ud i cat i o n i n h i s fav o r o n al l i s s ues (m o t i o n ), an d p et i t io n er o b ject s . Su m m ary ju d g m en ti s ap p ro p ri at e " i f t he p l ead i n g s , an swers t o i n t erro g at o ri es , d ep os i ti on s , ad m i s s i o n s , an dan y o th er accep tab l e m at eri al s , t o g et h er wi th t h e affi d av i t s o r d ecl arat i o ns , i f an y , s h o w th atth ere i s n o g enu i n e d i s p u t e as t o an y

m at eri al factan d t h ata d eci s i o n m ay b e ren d ered as a m at t er o f l aw." Ru l e 1 2 1 (b ). Th e m o vi ng p art y b ears th e b u rd en o f p ro vi ng th at n o g en u i n e d i s p u t e as t o an y

m at eri al factex is t s, an dwe wi l l draw an y fact u al i n feren ces i n th e l i g htm o s tfav o rab le t o th e n o n m o v i n g p art y . See, e.g ., An on ym o u s v . Co m m i s s i o n er, 1 3 4 T.C. 1 3 , 1 5 (2 0 1 0 ).

1 Al l s ect i o n referen ces are t o th e In tern al Rev en u e Co d e o f 1 98 6 , as am en d edan di n effect fo r 2 0 13 , an dal l Ru l e referen ces are t o th e Tax Co u rtRu l es o f Pract i ce an dPro cedu re. Al l d o l l ar am o un t s h av e b een ro un d edt o t h e n eares t d o l l ar.- 3
-

[* 3 ] W e wi l l g ran tth e m o t io n. Back gro u n d W e d raw t h e fo l l owi n g fact s p ri n ci p al l y fro m th e p l ead i n g s an dthe fact s th atwe h av e d eem eds t i pu l at ed
. Pet i t i o ner's l eg al ad dres s wh en th e p et i t i o n was fi l ed was i nNew J ers ey . He i s a fo rm er p ro fes s i on al b as k etb al l p l ay er wh o , i n2 0 13 , was co n v i ct edi nFed eral
co u rto f wi re frau dfo r ru n n i ng a real es t at e Po nzi s ch em e. See Un i t edSt at es v . Geo rg e, 6 8 4 F. Ap p 'x 2 23 (3 dCi r. 2 0 1 7 ). Pet i t i o ner was i n carcerat edfo r th e wh o l e o f 2 01 3 , an dh e h as rem ai n edi n carcerat edt o th e p res en t. He i s s ch edu l ed fo r rel eas e i n Au g u st2 0 2 1
. In 2 0 1 3 , p et it i on er recei v eda Nat i o n al Bas k etb al l As s o ci at i o n(NBA) p en si o n d i s tri b u t io n o f $ 2 08 ,1 11 th ro u g h U.S. Ban k , N.A. Th e b an k wi th h el d $ 4 1 ,6 2 2 o f i n co m e t ax fro m th e d i s tri bu t i o n . Pet i t i o ner was 4 5 y ears o f ag e o n Decem b er 3 1 , 2 0 13
. Pet i t i o ner h as m ad e n o retu rn o f Fed eral i nco m e t ax fo r 2 0 1 3 . Th atcau s ed
res p o n d en t t o m ak e a ret u rn fo r h i m . OnM ay 1 1 , 2 0 15 , In t ern al Rev enu e Serv i ce Rev enu e Ag en t (RA) Den n i s M . Lan d ad i o ex ecu t eda s ect i o n6 0 2 0 (b ) cert i fi cat io n
o f a s ub st i tu t e ret urn fo r p et i t i on er fo r h i s 2 0 1 3 t ax y ear, s h owi n g an u np ai dt ax b al an ce o f $ 2 8 ,6 9 6 . To arri v e atth atb al an ce, RA Lan d ad i o i n cl u d ed i n- 4
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[* 4 ] p et i t i o n er's 2 0 1 3 g ro s s i n co m e t h e $ 2 08 ,1 1 1 p en s i o n d i s tri b u t i on . Th en , as s u m in g th atp et i t i o n er's 2 0 13 fi l i n g s t atu s was " s i n g l e" , h e al l o wedp et i t i o n er a
s t an d ardd edu ct i o n o f $ 6 ,1 0 0 an dp ers o n al ex em p t i on o f $ 3,9 0 0 , wh i ch res u l t edi n t ax ab l e i n co m e o f $ 1 9 8,1 1 1. RA Lan d ad i o cal cu l at edan i n co m e t ax o f $ 4 9 ,5 0 7
an d al s o a s ect i on 7 2 (t ) t ax o f $ 2 0 ,8 1 1 , wh i ch h e as s u m edp et it i on er o wedb ecau s e h e co ns i d eredth e p en s i o n d i s tri b u t i o n t o b e an earl y d i s tri b u t io n fro m

a qu al i fi ed ret i rem en tp l an . RA Lan d ad i o s u m m edth os e t wo am o u n ts t o arri ve at a d efi ci en cy

i n t ax fo r 2 0 1 3 o f $ 70 ,3 1 8. He th en s ubt ract edth e $ 4 1 ,6 2 2 o f wi th h o l d i n g , wh i ch res u lt edi n th e u np ai dt ax b al an ce o f $ 2 8 , 6 9 6 (p l u s th e ad d it i o n s t o t ax ). OnJ u l y 2 4 , 2 0 15 , res p o n d en tm ai ledt o p et i t i o n er ath i s l as t kn o wn ad dres s a s t atut o ry n o t i ce o f d efi ci en cy

refl ect i n g th e ab o v e. OnOct o b er 1 5 , 2 01 5 , p et i t i on er t im el y fi ledth e p et i t i o n . He as s i g n s erro r t o res p o n d en t 's d et erm in at i o ns i nth ei r en ti ret y , arg u i n g th at(1 ) h is i n carcerat i o n h as p rev en t edh i m

fro m m ak in g a t ax retu rn , (2 ) al l t ax es o wed o n t h e d is tri b u t i o n were wi th h el db y

th e NBA Pen s i o n Offi ce, an d(3 ) p ay i n g th e am o u n t s o wed
u n d er t h e n o t i ce wo u l dp o s e a h ard s h i p o n h i m an dh i s fam i l y . Aft er we t wi ce co n ti n u eda t ri al o n p et i t i o n er's m o t i o n , res p o n den tm ad e t h e
m o ti o n . Ino p po s in g th e m o t i o n , p et i t i o n er arg u es th ath i s i n carcerat i o n h as p rev en tedh i m

fro m acces s i n g th e d o cu m en t at i on n eed edt o s ub s t an t i at e al l eg ed- 5
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[* 5 ] d educt i b l e ex p en s es an d , th erefo re, t here i s a g en u i n e d i sp u t e o f m at eri al fact
as t o h i s d edu ct i b le ex pen s es s u ffi ci en tt o p recl u d e en try o f s u m m ary ju d g m en t
. Di s cu ss i o n I. Rel ev an tLeg al Au th ori ti es A. Defi ci en cy

i n Tax Th e In t ern al Rev en u e Co d e i m p o ses a Fed eral i n co m e t ax o nth e t ax ab l e i n co m e o f ev ery

i nd i v i du al . See s ec. 1 . Th e t ax ab l e i n co m e o f an i n d i v i du al wh o d o es no tel ectt o i t em i ze h i s d edu ct i o n s fo r t h e t ax ab l e y ear i s h i s g ro s s i n co m e
m i n u s (1 ) th e s t an d ard d educt i o nan d(2 ) t h e d edu ct i o n fo r p ers o nal ex em p t i o n s . See s ec. 6 3 (b ). Gro s s i n co m e i n cl u d es p en s i o ni n co m e. See s ec. 6 1(a)(1 1 ). Fo r 2 0 1 3 , th e s t an dardd educt i o n fo r an i n d i v idual wi th s i n gl e fi l i n g s t atu s was $ 6 ,1 0 0,
s ee s ec. 6 3 (c); Rev . Pro c. 2 01 3 -1 5 , s ec. 2 .0 7 (1 ), 2 0 1 3 -5 I.R.B. 4 4 4 , 4 4 8 , an dth e
ex em p t i o n am o u n twas $ 3 ,9 0 0 , s ee s ec. 1 5 1 ; Rev . Pro c. 2 01 3 -1 5 , s ec. 2 .1 1 (1 ), 2 0 1 3 -5 I.R.B. at4 4 8 . Ing en eral , ev ery U.S. res i d en t wh o s e g ro s s i n co m e fo r t h e t ax ab l e y ear eq u al s o r ex ceed s th e ex em pt i o nam o u n t i s req ui redt o m ak e a ret u rn
o f i n co m e t ax . See s ec. 6 01 2 (a)(1 )(A). Sect i o n 7 2(t )(1 ) p ro v i d es fo r a 1 0 % ad d it i o n al t ax o n d i s tri b u ti o n s fro m qu al i fi edret i rem en tp l an s , as th att erm i s d efi n edi n s ect i o n 4 9 7 4 (c). Qu al i fi edret i rem en tp l an s i ncl u d e p en s i o n p l an s d es cri b edi n s ect i o n 4 0 1 (a). See s ec. 4 9 7 4 (c). Sect i o n7 2 (t )(2 ) p ro v i d es- 6
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[* 6 ] ex cep t i on s t o i m

p o si t i on o f t h e ad d it i on al t ax , i n cl u d i n g an ex cep t i o n fo r d i s tri b u t i o n s m ad e t o t ax p ay ers 5 9 -1 / 2 y ears o l d o r o l d er. Th e t erm " d efi ci en cy " i s , i n g en eral , d efi n ed as th e ex ces s (i f an y ) o f t h e t ax i m p o s edo v er t h e am o u n t
s h o wnas t ax up o n th e t ax p ay er's retu rn . See s ec. 6 21 1 (a). Gen eral l y , i f a t ax p ay er m ak es n o retu rn fo r a t ax ab le y ear, t h e d efi ci en cy i nh i s i n co m e t ax fo r th e y ear wo u l db e eq ual t o h i s i n co m e t ax l i ab i l i ty fo r t h e y ear, ev en i f t h e Co m m i s s i o n er p rep ares a s ub s t i tu t e ret u rn fo r h i m . See Sp url o ckv . Co m m i s s i o n er, 1 1 8 T.C. 1 5 5 , 1 6 1 (2 0 0 2) (h ol d i n g s ect i o n 6 0 2 0 (b ) retu rni s n o ta retu rn u n d er s ect io n 6 2 1 1 (a)). B. It em i zedDedu ct i o n s Sect io n 6 3 al l o ws an i n d i v i du al , i nd et erm i n i n g h i s t ax ab l e i nco m e, t o i t em i ze h i s d edu ct i o n s rat h er t h an t ak e a s t an d ardd edu ct i o n . Ho wev er, s ect i o n 6 3 (e)(1 ) p ro vi d es thatn o i t em izedd edu ct i o n s s h al l b e al l o w edu n l es s th e i n d i v i du al m ak es an el ect i o n . Sect i o n6 3 (e)(2 ) p ro vi des th ats u ch el ect io ns h al l b e
m ad e o n th e i n d i v i du al 's retu rn . Thu s , i f an i n d i v i du al fai l s t o fi l e a ret urn , h e h as
m ad e n o el ect i on t o i t em i ze h i s d edu ct io n s. See Sal at i v . Co m m is s i o n er, T.C. M em o. 1 9 8 9 -1 9 2
. If an i n di vi du al d o es n o tfi le a ret u rn an d , as a res ul t , th e Co m m i s s i o n er p rep ares a s ub s t i tu t e ret u rn , th en th e i n d i v idual h as m ad e n o el ect io n an dm ay

n o tcl ai m

i t em i zedd edu ct i o n s . See M u rrayv . Co m m i s si on er,- 7
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[* 7 ] T.C. M em o . 2 01 2 -2 1 3 ; acco rdJ ah nv . Co m m i s s io n er, 4 3 1 F. Ap p 'x 2 10 , 2 1 2 (3 dCi r. 2 0 1 1). C. Ad d it i on s t o Tax Sect io n 6 6 5 1 (a)(1 ) i m

p o s es an ad d i t io nt o t ax fo r fai lu re t o fi l e a t i m el y t ax retu rn . Th e ad di t i o n equ al s 5 % o f t h e am o u n treq u i redt o b e s h o wn as t ax o nth e d el i n qu en tretu rn fo r each m o n th o r fract i o n thereo f duri n g wh i ch th e ret u rn
rem ai n s d el i n qu en t , up t o a m ax i m u m ad di t i o no f 2 5% fo r return s m o re t h an fo u r
m o nt h s d el i n quen t . Id . Sect io n 6 6 5 1 (a)(2 ) i m po s es an ad d it i on t o t ax fo r fai l u re t o p ay t i m el y th e am o u n ts h o wnas t ax o nan y retu rn . Th e am o u n to f t h e ad d i t i o n i s equ al t o 0 .5 % o f t h e t ax fo r each m o n th o r fract i o nthereo f du ri n g wh i ch th e t ax
rem ai n s u np ai d , up t o a m ax im u m ad d i ti o n o f 2 5%. A s ub s t i tut e fo r retu rn p rep aredp u rs u an tt o s ect i o n 6 0 2 0 (b ) i s d is reg ard edfo r p u rp o s es o f s ect i on 6 6 5 1 (a)(1 ) b u t i s treat ed as th e t ax p ay er's return fo r p u rp o s es o f s ect i o n 6 6 5 1 (a)(2 ). See s ec. 6 6 51 (g ). A d efen se t o ei th er ad d i t i o ni s th atthe fai l u re t i m el y to fi l e o r t o p ay

(as th e cas e m ay

b e) i s du e t o reas o nab l e cau s e an dn o tt o wi l l fu l n eg l ect
. See s ec. 6 6 5 1(a)(1 ) an d(2 ).- 8
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[* 8 ] II. Di s cu s s i o n A. Defi ci en cy

i n Tax Pet i t i o ner's 2 0 1 3 Fed eral i n co m e t ax retu rn was du e o nAp ri l 1 5 , 2 0 1 4 . See
s ec. 6 0 72 (a). In 2 0 1 3 , p et i ti o n er recei v eda p en s i o nd i s tri b u ti o no f $ 20 8 , 1 1 1 ($ 1 6 6,4 8 9 , aft er i n co m e t ax wi th h o l d i n g ), b ut , fo r 2 01 3 , h e fi l edn o i nco m e t ax retu rn . Th ere i s n o d i s p u t e as t o th o s e t wo m at eri al fact s . Pen s i on d i st ri b u t i o n s
are an i tem

o f g ro s s i n co m e. See s ec. 6 1 (a)(1 1 ). Pet i ti o n er m ak es n o arg u m en t th atth e fu l l am o u n to f t h e p en s i o nd i s tri bu t i o ns h ou l dn o tb e i n cl ud ed i nh i s 2 0 1 3 g ro s s i n co m e. Pet i t i o n er's o n l y arg u m en t i nco n t es t i n g t h e d efi ci en cy res p o n d en t d et erm i n edi s th at , b ecau s e h e i s i n carcerat edan dd o es n oth av e h i s reco rd s, i twas i n ad v i s ab l e fo r h i m

t o fi l e a ret u rn , wh i ch , i f h e h adh i s reco rd s an d h adfi leda retu rn , m i g h th av e rep o rt edd edu ct i b l e ex p en s es i nex ces s o f t h e $ 6 ,1 0 0 s t an d ard d educt i o n res p on d en t al l o wed . Becau s e h e fi l edn o retu rn fo r 2 0 1 3, p et i t i o n er
co u ldn o tel ectt o i t em i ze h i s d edu ct i on s fo r 2 0 1 3, s o an y d i s pu t e as t o h y p o th et i cal ex p en d i tu res i n 2 01 3 wo u ldn o t b e a d i sp u t e as t o a m at eri al fact
. Th erefo re, we co n cl ud e th at , as d es cri b ed ab ov e, res p o n d en t p ro p erl y cal cu l at ed
an i n co m e t ax o f $ 4 9 , 5 0 7
. Al s o , earl y d i s tri bu t i on s fro m

ret i rem en tp l an s (b efo re ag e 5 9-1 / 2 ) are s ub

jectt o an ad d i t i o n al t ax o f 1 0 % u nl es s cert ai ns p eci fi ed
ex cep t i o n s fro m

the t ax are av ai l ab l e. W e h av e d eem eds t ip u l at edth at p et it i o n er- 9
-

[* 9 ] was 4 5 y ears o l do n Decem b er 3 1 , 2 01 3
. Pet i t i o n er m ak es n o arg u m en tth at th e p en s i o n d i s tri b u t i o n was n o tan earl y d i s tri b ut io n fro m

a qu al i fi edret irem en t p l an o r th atan y

ex cep t i on t o th e 1 0 % ad d i t i o n al t ax o n earl y d i s tri b u ti o n s fro m qu al i fi edret i rem en t p l an s ap p l i es . Th ere i s n o d i s p u t e as t o an y m at eri al factwi th
res p ectt o t h e ad d it i o n al t ax . Res p o n d en tp ro perl y d et erm i n edan ad d i t i o n al
s ect i on 7 2 (t ) t ax o f $ 2 0,8 1 1 . Al t o g et h er, res p o n den tp ro perl y d et erm i n eda d efi ci en cy

o f $ 7 0 , 3 1 8 i n p et i t i o n er's 2 0 13 i n co m e t ax l i ab i l i ty . B. Ad d it i on s t o Tax Th ere i s n o qu es t i o n th atp et i t i o n er n ei th er fi l eda 2 0 1 3 Fed eral i n co m e t ax retu rn n o r p ai d al l o f t h e u np ai dt ax s h o wno nthe 2 0 1 3 s ub s t i tu t e ret u rn m ad e fo r h i m b y res p o n den t . Pet it i on er's p ri n ci p al d efen s e t o res p o n d en t's ad d i t i o n s t o t ax i s thath e h as b een i n carcerat ed , s o th atd o cu m en t s ev i d en ci n g d edu ct i b l e
ex p en d i tu res are u n av ai l ab l e t o h i m , an d i two u l db e i n ad v i s ab l e fo r h i m t o fi l e a 2 0 1 3 retu rn u n t i l h e o b t ai n s d ocu m en t s t h atm ig htev i d en ce t ho s e d edu ct i b l e
ex p en d i tu res . Ev en i f i twere t ru e t h atth ere i s ev i den ce o f d educt i b l e am o u n t s n ot
av ai l ab l e t o p et i t i o ner, t h atwo u l dn o tn eces sari l y es t ab l i s h reas o n ab l e cau s e an da l acko f wi l lfu l n eg lectfo r n o tfi l i n g o r p ay i n g . Th e m ere fact th atp et it i o n er was i n carcerat edwh enh i s return was du e i s n o treas o n ab l e cau s e fo r h i s fai l u re t o fi l e- 1 0 -

[* 1 0 ] t i m el y . Ll o ren t e v . Co m m i s si o n er, 7 4 T.C. 2 6 0, 2 6 8-2 6 9 (1 9 8 0 ), aff'di n p art , rev 'di n p arto n o th er g ro u n d s , an drem an d ed , 6 4 9 F.2 d1 52 (2 d Ci r. 1 9 8 1 ); Th ro wer v . Co m

m i s s i o n er, T.C. M em o . 2 0 0 3-1 3 9, 2 0 0 3 W L 2 11 0 7 67 5 , at* 5
. No r i s th e u n av ai l ab i li ty

o f reco rd s g en eral l y reas o n ab l e cau s e fo r fai l u re t o fi l e a t i m el y retu rn . Th ro wer v . Co m m i s s i o n er, 2 0 0 3 W L 2 1 1 0 7 6 7 5 , at* 5 . No th i n g i n th e reco rds u g g es t s thatp et i t i o n er ap p l i edfo r anex t en si o no f t im e t o fi l e h i s 2 0 13 retu rn . No r h as h e s h o wns p eci fi c fact s rai s i n g a g en u i ne d i s p ut e fo r t ri al th ath e
co u ldn o th av e p rep ared a t im el y 2 0 1 3 retu rnwi th a reas o n ab l e d eg ree o f accu racy
o n th e b as i s o f t h e i n fo rm at i o n av ai l ab l e t o h im as o f th e due d at e o f t hatretu rn . Wh i l e we ap p reci at e t h e d i ffi cu l t i es th ati n carcerat i o ni m p o s edo n p et i t i o n er i n
o b t ai n i n g i n fo rm at i o n th atm ig h ts h o wth ath e h add edu ct ib l e ex p en di tu res fo r 2 0 1 3 thatex ceed th e $ 6,1 0 0 s t an d ardd edu ct i o nacco rd edh i m b y res p on d en t , p et i t i o n er h as n o t --ei th er i n h i s d efen se t o th e m ot i o no r i n h i s ju st i fi cat i o nfo r h i s two co n t i n u an ce req u es t s --d es cri b ed an y ex pen d i tu re t h at wo u l d qu al i fy fo r a 2 0 1 3 d edu ct i o n o r cred i t. In o p p o si n g a m o t io nfo r s u m m ary ju d g m en t , th e
n o n m o v an tm ay

n o tres tup o n th e m ere al l eg at i o n s o r d en i al s i nh i s p l ead i n g s b u t i n s t eadm u s ts etfo rth s p eci fi c fact s s h o wi n g th atth ere i s a g en u i n e d is p u te fo r tri al . Ru le 1 2 1 (d ); s ee Su n d s tran dCo rp . v . Co m m i s s i o n er, 9 8 T.C. 5 1 8 , 5 2 0- 1 1 -

[* 1 1 ] (1 9 9 2 ), aff'd , 1 7 F.3 d 9 6 5 (7 th Ci r. 1 9 9 4 ); M u rp h y v . Co m m i s s i on er, T.C. M em o. 2 0 1 9 -7 2 , at* 7
. Th e reg u l at i o n s p ro v i d e t h ata t ax p ay er h as reas o n ab l e cau se fo r fai l u re t o t i m el y pay

a t ax i f " the t ax p ay er h as m ad e a s at i s fact o ry s h o wi ng th at h e ex erci s ed
o rd i n ary b u s i n es s care an dp ru d en ce i n p ro v i d in g fo r p aym en to f h i s t ax l i ab i l i ty
an d was n ev ert h el es s ei th er u n ab l e t o p ay th e t ax o r wo u lds u ffer an u n du e h ard s h i p * * * i f h e p ai do n th e du e d at e." Sec. 3 0 1 .6 65 1 -1 (c)(1 ), Pro ced . & Ad m i n . Reg s. Th e reg ul at i o ns fu rt h er s tat e: In d et erm in i n g wh et h er t h e t ax p ay er was u n ab l e t o p ay th e t ax i ns p it e o f t h e ex erci s e o f o rd i n ary b u s i n es s care an d p ru d en ce i np ro v i d i n g fo r p aym en to f h i s t ax l i ab i l it y , co n s id erat i o nwi l l b e g i v ent o al l th e fact s an dci rcu m s t an ces o f t h e t ax p ay er's fi n an ci al s itu at i o n , i n cl u d i n g th e am o u ntan d n ature o f t h e t ax p ay er's ex p en d itures i n l i gh to f th e i n co m e (o r o th er am o u n ts ) h e co u l d, atth e t im e o f s u ch ex p en d i tu res , reas o n ab l y

ex p ectt o recei v e p ri or t o th e d at e p res cri b edfo r t h e p aym en to f t h e t ax . * * * [Id .] An d wh i l e p et i t i o n er av ers i nth e p et it i on th atp ay i n g t h e am o u n t s o wed
u n d er t h e n o t i ce wo u l dp o s e a h ard s h i p o n h i m an dh i s fam i l y , h e h as n o t
res p o n d ed t o th e m ot i o n wi th an y s p eci fi c fact s s h owi n g t h ath e ex erci s edo rd i nary b u s i n es s care an dp ru d en ce i n p ro v i d i n g fo r h i s 2 01 3 t ax l i ab i l i ty . No r h as h e
res p o n d ed wi th s p eci fi c fact s co n cern i ng h i s fi n an ci al s itu at i o n wh i l e t he fai l u re t o p ay p en al ty accru ed . Wh i l e h i s i n carcerat i o nm ay h av e h am

p eredh i s ab i l i ty

t o- 1 2 -

[* 1 2 ] o b t ai n d o cu m en t s es t ab l i s h i n g th e rel ev an tfact s , p et it i on er ad m i t s t o fam i l y b u tfai ls t o ex p l ai n wh y fam i ly m em b ers d i d n o t as s is th i m

i ng at h eri n g d o cu m en t s
n o ti n h i s i m

m ed iat e p o ss es s i o n . Pet i t i on er h as fai ledt o s h ow th atth ere i s a g en ui n e d i s p u t e fo r t ri al th at h e h adreas on ab l e cau s e fo r n o tp ay i n g th e u np ai dt ax
o n th e 2 01 3 retu rn m ad e fo r h i m b y RA Lan d ad i o . C. Su m

m ary J u dg m en t Ru l e 1 2 1(b ) p ro vi d es th at , i nthe ab s en ce o f a g en u i ne d i s p u t e as t o an y
m at eri al fact , an di f a d eci s io n m ay b e ren dered as a m at t er o f l aw, we m u s tren d er a d eci s i o n o n a m o t i o n fo r s u m m ary ju d g m en t . Th ere i s n o g en u i n e d i s p u t e as t o
an y m at eri al fact , n o r i s th ere an y d i s p u t e rel at in g t o res p o n d en t 's cal cu lat i o n s o f a $ 7 0 ,3 1 8 d efi ci en cy

i n p et it i o n er's 2 0 1 3 t ax o r o f t h e ad d i t i o ns t o t ax o f $ 6,4 5 7 an d $ 2 ,2 9 6 u n d er s ect io n 6 6 5 1 (a)(1 ) an d(2 ), res p ect i v el y . No r i s th ere an y d o ub tas t o th e ap p l i cab l e l eg al p ri n ci p les
. III. Co n cl u si o n As s t at ed , we wi l l g ran tth e m o t i o n . As t o th e ap p ro pri at en es s o f a
co l l ect i o n act i on th atres p o n d en tm i g h tt ak e t o co l lectp et i t i o ner's u np ai d2 0 1 3 t ax ,- 1 3 -

[* 1 3 ] o r wi th res p ectt o an y co ll ect io nal t ern at i v e t h atp et i t i o n er m i g hto ffer
res p o n d en t, p et i t i o ner wi l l h av e t h e o p p o rtu n i ty t o rai s e t h o s e m at t ers du ri n g th e
co l l ect i o n p ro ces s . See s ecs . 6 3 2 0 (a), 6 3 30 (a).
Anap p ro p ri at e o rd er an dd eci s i o n wi l l b e en t ered
.