Tax Court In Brief | Kemegue v. Comm'r | Additions To Tax For Failure To File

• Jurisdiction: United States,Federal
• Law Firm: Freeman Law
• Subject Matter: Tax, Income Tax, Tax Authorities
• Author: Freeman Law
• Published date: 21 February 2023

The Tax Court in Brief - February 13th - February 17th, 2023

Freeman Law's "The Tax Court in Brief" covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation: The Week of February 13th, 2022, through February 17th, 2023

• Thomas v. Comm'r, 160 T.C. No. 4| February 13, 2023 | Toro, J. | Dkt. No 12982-20
• Trice v. Comm'r, T.C. Memo. 2023-15| February 13, 2023 | Gustafson, J. | Dkt. No 20398-19
• Cattail Holdings, LLC v. Comm'r, T.C Memo. 2023-17| February 14, 2023 | Lauber, J. | Dkt. No 27209-21
• Patrinicola v. Comm'r, T.C. Memo. 2023-16| February 14, 2023 | Goeke, J. | Dkt. No. 498-19

Kemegue v. Comm'r, T.C. Summary Opin. 2023-5| February 13, 2023 | Carluzzo, J. | Dkt. No. 8987-20S

Summary: In this non-precedential opinion (see section 7463(b)), the Tax Court addresses an addition to tax for failure to pay pursuant to section 6651(a)(1) and (2). During 2017 Kemegue lost his job and experienced multiple personal and professional setbacks. In April 2018, Kemegue timely requested an extension for filing his 2017 tax return until October 2018. He did not, however, file a tax return for 2017. The IRS prepared a substitute for return for Kemegue for 2017 on the basis of third-party reporting. See 26 U.S.C. ' 6020(b). Kemegue did not pay the 2017 income tax liability shown on the substitute for return.

Key Issues: Whether Kemegue was liable for the additions to tax assessed for failure to pay pursuant to section 6651(a)(1) and (2)?

Primary Holdings: Yes. Kemegue did not offer any explanation or evidence of any specific incapacity or illness during the time for filing his return. Rather, he testified to his efforts to seek other employment, including traveling to other states and trying to start his own business. Kemegue did not show reasonable cause for his failure to file his 2017 return and is liable for the addition to tax pursuant to section 6651(a)(1) for the year in issue.

Key Points of Law:

Additions to Tax, Section 6651. Section 6651(a)(1) provides for an addition to tax in the event a taxpayer fails to file a timely return, determined with regard to any extension of time for filing, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. Section 6651(a)(2) provides for an addition to tax for failure to timely pay the...