T.C. Memo. 1999-379
UNITED STATES TAX COURT
BEVERLEE COCHRANE, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 12144-98. Filed November 16, 1999.
Beverlee Cochrane, pro se.
Rick V. Hosler, for respondent.
MEMORANDUM OPINION
CHIECHI, Judge: Respondent determined the following defi-
ciencies in, and additions to, petitioner’s Federal income tax
(tax):
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Additions to Tax
Section Section
Year Deficiency 6651(a)(1)1 6654
1989 $1,724 $349 ---
1990 37,975 9,494 $2,486
1991 2,462 616 141
1992 25,267 6,317 1,102
1993 812 189 ---
The issues remaining for decision are:
(1) Have the respective periods of limitations under section
6501 expired with respect to petitioner’s taxable years 1989,
1990, 1991, and 1992? We hold they have not.
(2) Is petitioner liable for the addition to tax under
section 6651(a)(1) for each of the years 1989, 1990, 1991, and
1992? We hold that she is.
(3) Is petitioner liable for the addition to tax under
section 6654 for each of the years 1990, 1991, and 1992? We hold
that she is to the extent stated herein.
Some of the facts have been stipulated and are so found.
Petitioner, who was single during the years at issue,
resided in Phoenix, Arizona, at the time the petition was filed.
Petitioner requested, and received, extensions of time until
August 15, 1990, and August 15, 1991, respectively, within which
to file her 1989 and 1990 tax returns and included tax payments
with those requests in the amounts of $390 and $1,128.25, respec-
1
All section references are to the Internal Revenue Code in
effect for the years at issue. All Rule references are to the
Tax Court Rules of Practice and Procedure.
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tively. The Internal Revenue Service (Service) has no record
that petitioner filed her 1989 and 1990 tax returns on those
respective dates or on any other dates. Nor does the Service
have a record that petitioner filed tax returns for 1991, 1992,
and 1993.
Tax was withheld in the amounts of $330 and $58 from the
wages that petitioner received during 1989 and 1993, respec-
tively. No tax was withheld from the $18 of wages that peti-
tioner received during each of the years 1990 and 1991. No tax
was withheld for petitioner’s taxable year 1992 because she
received no wages during that taxable year.
On April 10, 1998, respondent sent petitioner a notice of
deficiency (notice) with respect to her taxable years 1989, 1990,
and 1991 and a separate notice with respect to her taxable years
1992 and 1993. In those notices, respondent determined, inter
alia, that petitioner had failed to file tax returns for the
years at issue, that she is liable for additions to tax under
section 6651(a)(1) for those years, and that she is liable for
additions to tax under section 6654 for her taxable years 1990,
1991, and 1992.
Petitioner bears the burden of showing error in the determi-
nations in the notices. See Rule 142(a); Welch v. Helvering, 290
U.S. 111, 115 (1933). We reject petitioner’s argument that the
standard of proof applicable in criminal proceedings is control-
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ling in the instant case.
Before addressing each of the issues remaining for decision,
we note that we have considered all of petitioner’s contentions
and arguments that are not discussed herein, and we find them to
be baseless, without merit, and/or irrelevant.
Period of Limitations
Although not pled in the petition, petitioner argues that
the respective periods of limitations under section 6501 with
respect to her taxable years 1989 through 1992 have expired.2
That is because, according to petitioner, she timely filed her
tax returns for those years, and the notices with respect to
those years were not issued until April 10, 1998. We reject
petitioner’s contention.
Except for petitioner’s self-serving, uncorroborated, and
conclusory testimony that she timely filed her tax returns for
the years 1989 through 1992, the record is devoid of evidence
supporting petitioner’s position under section 6501. In fact,
2
Although petitioner also argues on brief about her taxable
year 1993, petitioner conceded at trial that she did not file a
tax return for that year. Therefore, we find that petitioner
also conceded that the period of limitations under sec. 6501 with
respect to petitioner’s taxable year 1993 has not expired.
Petitioner also conceded at trial that she is liable for the
addition to tax under sec. 6651(a)(1) for 1993. Assuming arguen-
do that petitioner had not made the foregoing concessions with
respect to her taxable year 1993, on the record before us, we
would nonetheless find that petitioner has failed to establish
that the period of limitations under sec. 6501 with respect to
1993 has expired and that she is not liable for the addition to
tax under sec. 6651(a)(1) for that year.
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official records of the Service that are part of the record in
this case show that petitioner did not file tax returns for any
of the years 1989 through 1992.3 We are not required to, and we
shall not, accept petitioner’s testimony that she timely filed
her tax returns for those years. See Geiger v. Commissioner, 440
F.2d 688, 689 (9th Cir. 1971), affg. per curiam T.C. Memo. 1969-
159; Tokarski v. Commissioner, 87 T.C. 74, 77 (1986).
On the record before us, we find that petitioner has failed
to establish that she filed tax returns for the years 1989
through 1992. Accordingly, we hold that the respective periods
of limitations under section 6501 with respect to those years
have not expired.
Addition to Tax for Failure to File
Section 6651(a)(1) imposes an addition to tax for failure to
file a tax return on the date prescribed for filing. That
addition to tax does not apply if it is shown that the failure to
file was due to reasonable cause, and not due to willful neglect.
See sec. 6651(a)(1).
Petitioner contends that she is not liable for the additions
to tax under section 6651(a) for the years 1989 through 1992.4
3
Service records also show that petitioner did not file a
tax return for 1993. See supra note 2 for petitioner’s conces-
sions regarding 1993.
4
As we indicated supra note 2, petitioner concedes that she
is liable for the addition to tax under sec. 6651(a) for her
taxable year 1993.
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In support of her position, petitioner states, inter alia:
Why did it take Respondent nine years to notify Peti-
tioner that they did not have her returns on file for
the years 1989 through 1993, if, in fact, they did not
have the returns, unless Respondent, through laxity and
clerical bungling, lost track of Petitioner’s returns;
or else, deceitfully and intentionally, with malice
aforethought, submerged Petitioner’s returns and de-
ferred contact with her, all the while tabulating
penalties and interest that would have been far less
significant had the “Total” lines been timely drawn?
The Notice of Deficiency sent to Petitioner in January
of 1998 clearly witnesses that the potential for stun-
ning penalties and interest is increased proportionate
to the delay in notification * * * .
* * * * * * *
If the IRS is allowed to collect monies for alleged
“unfiled” returns from 10 years past, when taxpayers
are only required to keep them for three, what’s to
stop them from seeking to collect for returns they
claim to have no record of that date back 20 years, or
more? The taxpayer should have some means of protect-
ing him-or herself from the burden of filing proof when
the date of notification exceeds the requirement date
for keeping such return. If Respondent can’t keep
track of a taxpayer in this high-tech age, when every-
thing about everyone is easily knowable and privacy
rights are flagrantly violated by legions of both
professional and personal snoops-–many of them employed
by Respondent * * * , then Respondent deserves to lose
any revenue that would accrue from its assessments,
whether taxpayer has proof of filing or not. If Re-
spondent deliberately defers contact with a taxpayer in
order to subsequently collect greater penalties and
interest, then this would constitute not only malicious
intent, but fraud.
* * * * * * *
It is convenient-–and necessary, in the absence of
proof--for Respondent to assert that Petitioner did not
file taxes for the years 1989 through 1993, though it
is impossible to prove such assertion. In fact, Peti-
tioner would not dare willfully omit a filing, in view
of the harassment visited upon her by Respondent in
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years when her returns did not bear the signature of a
professional preparer. The provisions of Section 6651
cannot even apply to Petitioner because Petitioner did,
in fact, file her returns, and Respondent has offered
no proof to the contrary, nor can it. If the burden of
proof rests with Petitioner, there is a standoff, and
the case should be dismissed.
We find petitioner’s contentions and arguments under section
6651(a)(1) to be baseless, without merit, and/or irrelevant. On
the record before us, we find that petitioner has not shown that
her failure to file tax returns for her taxable years 1989
through 1992 was due to reasonable cause, and not to willful
neglect. Consequently, we sustain respondent’s determinations
that petitioner is liable for additions to tax under section
6651(a)(1) for those years.
Addition to Tax for Failure to Pay Estimated Tax
Section 6654(a) imposes an addition to tax for failure to
pay estimated tax. The addition to tax under section 6654(a) is
mandatory unless the taxpayer establishes that one of the excep-
tions in section 6654(e) applies. See Grosshandler v. Commis-
sioner, 75 T.C. 1, 20-21 (1980).
Petitioner contends that she is not liable for the additions
to tax under section 6654(a) for the years 1990 through 1992. In
support of that contention, petitioner argues:
in 1990, Petitioner prepaid over 100% of the estimated
taxes owed in 1989; thus, no further estimated payments
were required and no penalty was due therefor in 1990.
In 1991, no tax was due; thus, no estimated tax payment
was required in 1992. No estimated taxes were required
to be paid from 1989 through 1993. Exceptions to the
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underpayment penalty under §6654(e)(2), apply for 1990
and 1992.
Section 6654(e) provides in pertinent part:
(e) Exceptions.--
(1) Where tax is small amount.--No addition to tax
shall be imposed under subsection (a) for any taxable
year if the tax shown on the return for such taxable
year (or, if no return is filed, the tax), reduced by
the credit allowable under section 31, is less than
$500.
(2) Where no tax liability for preceding taxable
year.-–No addition to tax shall be imposed under sub-
section (a) for any taxable year if–-
(A) the preceding taxable year was a taxable
year of 12 months,
(B) the individual did not have any liability
for tax for the preceding taxable year, and
(C) the individual was a citizen or resident
of the United States throughout the preceding
taxable year.
The parties made various concessions at trial as well as in
the stipulation of facts and the supplemental stipulation of
facts filed in this case. Consequently, computations under Rule
155 will be necessary. On the present record, we find that
petitioner is liable for the additions to tax under section
6654(a) for 1990, 1991, and 1992 except to the extent that the
Rule 155 computations in this case establish that the exception
provided in either section 6654(e)(1) or section 6654(e)(2)
applies for any such year.
To reflect the foregoing and the concessions of the parties,
Decision will be
entered under Rule 155.