TAX COURT OPINION

Case: Arthur Toyakeseh Woyah
Docket Number: 17162-10
Judge: Halpern
Opinion Type: bench
Filed: 10/06/2011
Pages: 5

UNITED STATES TAX COURT WASHINGTON, DC 20217 ARTHUR TOYAKESEH WOYAH, Petitioner , COMMISSIONER OF NTERNAL REVENUE, Respondent ) ) ) ) ) Docket No. 17162-10. O R D E R Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED tha the Clerk of the Court shall transmit herewith to petitioner ancÍ to respondent a copy of transcript of Halpern at Washington, D.C. on September 14, 2011, containing his oral trial. the above case before Judge James S. fact and opinion rendered at the pages of the th trial of findings of the conclusion of In accordance with the oral findings of fact and opinion, an appropriate orde and decision will be entered. (Signed) James S. Halpern Judge Dated: Washington, D.C. October 6, 2011 . 8ÉRVEQ OCT 1 2 201t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 Bench Opinion By Judge James S. Halpern September 14, 2011 Arthur toyakeseh Woyah v. Commissioner Docket o. 17162-10 THE COURT: The Court has decided to render oral findings of fact and opinion in this case, and the following represents the Court's oral findings of fact and opinion. The oral findings of fact and opinion shall not be relied upon as precedent in any other case. This bench opinion is made pursuant to the authorit y granted by section 7459(b) of the Internal Revenue Code of 1986, as amended, and Rule 152 of the Tax Couit Rules of Practice and Procedure. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. . By notice of deficiency dated Aprilja¶ 15 2010, respondent determined deficiencies of $2,402, $1,431, and $3,580 in petitioner's Federal income taxes fcr 1997, 2007, and 2008, respectively, a delinquency addition to tax of $371, under section 6651(a) (1), for 1997, and accuracy related penalties 55H of $480.40, $286.20, and $716.00, under section Heritage Reporting Corporation (202) 628-4888 4 1 2 3 4 5 6662(a), for 1997, 2007, and 2008, respectively. The parties have stipulated certain facts. The stipulation of facts, with attached exhibits, is incorpo ated herein by this reference. Except as otherwise mentioned, petitioner bears the burden of 6 . proof. See Rule 142:(a). 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Petitioner resided in Maryland when he filed the pet:tion. Deficie11cies in Tax The deficiencies in tax result primarily from respondent's adjustments disallowing petitioner's miscell neous itemized deductions. In explaining the disallowance, respondent stated that petitioner had failed o establish that the deductions were paid, incurred, or expended for the designated purposes or that pe itioner was entitled to the deductions under any pro ision of the Internal Revenue Code. Petitioner assigned error to respondent's determination of deficiencies but, with respect to respondent's disallowance, claimed only that his 2007 and 2008 returns were filed with no illegal activities involved. At trial, petitioner had no documents to add to ose stipulated, nor did he call any witness s. He testified, but his testimony as to his entitle ent to any of the deductions disallowed by Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 respondent was vague and unconvincing. Petitioner has failed to carry his burden of proving his entitlement to any f the deductions disallowed by respondent . We shall sustain the deficiencies in tax. Additions to Tax and Penalties Section 7491 imposes on r,espondent the burden of production with respect to penalties. The taxpayer bears the burden of introducing evidence regardi g reasonable cause or a similar defense. Higbee . Commissioner, 116 T.C. 438, 446 (2001) . Respondent's records show that petitioner's 1997 Federal income tax return was filed on October 22, 2007. The return, itself, is stipulated. It shows that it was. signed by petitioner on October 21, 2007. Without question, it was delinquent. See sec. 6072(a). Section 6651(a) (1) provide for an addition to tax in the event a taxpaye fails to file a timely return (determined with re ard to any extension of time for filing) unless he taxpayer shows that such failure is due to reasona le cause and not due to willful neglect. The amount f the addition is equal to 5 percent of the amount equired to bê shown as tax on the delinquent return for each month or fraction thereof during which the return remains delinquent, up to a maximum Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 additio of 25 percent for returns more than 4 months delinqu nt. Id. Petitioner has failed to show that his del nquency in filing his 1997 return was due to reasona le cause and not due to willful neglect. We shall s stain the addition to tax. Section 6662(a) imposes an accuracy related 203H penalty At trial, respondent conceded that the penalty would apply only to the extent that petitio er's underpayments for the years in question were du to negligence or disregard of rules or regulations. See sec. 6662 (b) (1). Respondent has failed o carry his burden of producing evidence of petitio er's negligence. This concludes the Court's oral findings of fact an opinion in this case. Decision will be entered for respondent with respect to the deficiencies in tax and the addition to tax under section 6651(a) (1) and with respect to petitioner with respect to the section 6662(a) accuracy related penalty. T5H (Whereupon, at 10:20 a.m., the bench opinion in the above-entitled matter was concluded.) // // // Heritage Reporting Corporation (202) 628-4888