Three cases dismissed because taxpayers missed deadlines

Article Abstract:

Three 1998 cases involving petitions for the re-assessment of a tax deficiency were dismissed by the Tax Court as a result of their untimely filings. In the 'Howard' case, dismissal of the case was made due to the failure of the taxpayer to recognize an interval between bankruptcy filings during which the limitations period to submit a petition had been effective. In the 'Roberts' case, the taxpayer was deemed not qualified to apply the 150-day filing period when mailing and receipt of the deficiency notice was made while the taxpayer was in the US. In the 'Chang' case, a private meter postmark was considered not acceptable as proof of the well-timed mailing of a petition that was received after the due date had passed. The specifics of the cases were discussed.

Tax appeals, Powers and duties, United States. Tax Court

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Keeping company afloat was not reasonable cause

Article Abstract:

A bankruptcy court ruled that the use of tax trust funds for business expenses needed to keep the business operating is not a justifiable reason to abate the nonpayment penalties. In 'McTyre Trucking,' the taxpayer was in the trade of hauling oversized and overweight cargo. The individual experienced financial losses which led him to miss 28 straight quarters of payroll tax deposits which he used to pay employees and trade creditors. He argued that he had a reasonable cause for failing to pay the penalty. However, the court held that the individual wilfully neglected not to deposit trust fund taxes. The court found that the taxpayer knew that the taxes were outstanding and had no reasonable cause for not paying trust fund taxes.

Tax Law, Public Finance Activities, Taxation, Tax evasion

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