The Tax Court recently found itself without jurisdiction to reduce a deficiency by alleged overpayments of tax and uncashed refund checks from prior years not before the court.  Taxpayer was thus held liable for the deficiency and additions to tax for failure to timely file, failure to timely pay, and failure to make estimated payments.  Her claim that the failures stemmed from unresponsiveness on the IRS’ part to here guidance requests was insufficient to establish reasonable cause and not willful neglect.

See Barbara A. Kupersmit v. Commissioner, TC. Memo. 2014-129, No. 10169-13 (June 26, 2014)

With Thanks to “Tax Court Can’t Apply Prior Years’ Overpayments to Deficiency,” 2014 TNT 124-13, Tax Analysts (June 27, 2014)

Posted by David Staggs, Associate Editor, Wealth Strategies Journal