T.C. Summary Opinion 2007-22
UNITED STATES TAX COURT
CHRISTOPHER CLIFFORD ROILAND, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 4692-06S. Filed February 14, 2007.
Christopher Clifford Roiland, pro se.
Jeffrey S. Luechtefeld, for respondent.
PANUTHOS, Chief Special Trial Judge: This case was heard
pursuant to the provisions of section 7463 of the Internal
Revenue Code in effect at the time the petition was filed. The
decision to be entered is not reviewable by any other court, and
this opinion should not be cited as authority. Unless otherwise
indicated, subsequent 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.
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Respondent determined a $2,184 deficiency in petitioner’s
2002 Federal income tax. Respondent also determined additions to
tax of $491.40 and $327.60 under section 6651(a)(1) and (2),
respectively. After concessions,1 the issues for decision are:
(1) Whether petitioner received $12,613 of wage income, and (2)
whether petitioner is liable for an addition to tax under section
6651(a)(1).
Background
Petitioner resided in Seminole, Florida, when the petition
was filed.
In 2002, petitioner worked for the Steel Detailers, Inc.
(the company). The record does not indicate the precise nature
of petitioner’s duties for the company although petitioner
indicated that he worked with computers. Petitioner earned
$12,613 in 2002 but did not file a Federal income tax return for
that year.
Respondent issued petitioner a notice of deficiency in
November 2005. Respondent determined that petitioner had
unreported income of $12,613. Respondent also determined an
addition to tax under section 6651(a)(1) based on petitioner’s
failure to file a return.
1
Respondent concedes that petitioner was an employee for
Federal income tax purposes in 2002 and, therefore, was not
subject to self-employment tax. Respondent also concedes the
addition to tax under sec. 6651(a)(2).
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Discussion
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of showing the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant
to section 7491, the burden of proof as to factual matters shifts
to the Commissioner under certain circumstances. Because the
facts are not in dispute, we decide this case without regard to
the burden of proof.
1. Unreported Income
Section 61(a) provides that gross income means all income
from whatever source derived. At trial, petitioner acknowledged
that he had received $12,613 of wage income from the company in
2002. Accordingly, respondent’s determination on this issue is
sustained.
2. Addition to Tax Under Section 6651(a)(1)
If a tax return is not timely filed, an addition to tax will
be assessed “unless it is shown that such failure is due to
reasonable cause and not due to willful neglect”. Sec.
6651(a)(1). The Commissioner has the burden of production with
respect to the liability of any individual for an addition to tax
under section 6651(a)(1). Sec. 7491(c). The burden of showing
reasonable cause under section 6651(a) remains on the taxpayer.
Higbee v. Commissioner, 116 T.C. 438, 446-448 (2001).
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At trial, petitioner acknowledged that he had failed to file
his 2002 tax return. Accordingly, respondent has met his burden
of production.
Petitioner contends that he had reasonable cause for his
failure to file. Petitioner’s testimony on this point was
somewhat unclear, but he appears to argue that he received a Form
1099-MISC, Miscellaneous Income, which is generally used to
report income paid to independent contractors, instead of a Form
W-2, Wage and Tax Statement, which is used to report income paid
to employees. Petitioner contends that because he was an
employee rather than an independent contractor, he could not file
a tax return unless he received a Form W-2. We disagree.
Unavailability of information does not constitute reasonable
cause for failing to file a return. Crocker v. Commissioner, 92
T.C. 899, 913 (1989). A taxpayer is required to file timely
using the best information available and to file thereafter an
amended return if necessary. Estate of Vriniotis v.
Commissioner, 79 T.C. 298, 311 (1982). Petitioner does not
dispute that the Form 1099-MISC he received accurately reported
the amount of income he received from the company. Even if this
information was inaccurate or reported on the wrong form,
petitioner was required to file a return and, if necessary, file
an amended return thereafter. See id. Accordingly, petitioner
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has not demonstrated reasonable cause. Respondent’s
determination on this issue is sustained.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be entered
under Rule 155.