Professional Documents
Culture Documents
1
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year in issue. All
Rule references are to the Tax Court Rules of Practice and
Procedure.
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discussion herein.
2
All dollar amounts are rounded to the nearest dollar.
3
Other adjustments were made to petitioners’ return that
were computational and, therefore, will not be discussed.
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2005. Petitioners did not report the sale on their 2005 joint
$192,070. Mrs. Ajah’s 2005 Form W-2, Wage and Tax Statement,
4
Dr. Ajah did not appear at trial and did not execute the
stipulation of facts. Therefore, the Court will dismiss this
case as to petitioner Marcel Ajah for lack of prosecution. See
Rule 123(b). The Court will enter a decision as to petitioner
Marcel Ajah consistent with the decision to be entered as to
petitioner Jennifer Ajah.
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Burden of Proof
New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
142(a).
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Mrs. Ajah argues that all of the passive losses from rental
passive activities for the taxable year over the aggregate income
Listing Service of Long Island, Inc., and the State of New York
real estate broker. Mrs. Ajah testified that she worked at least
E and may have done so in the past. This Court has consistently
Mrs. Ajah would need to perform 750 hours of service for each
hours for both rental properties would be 1,040 hours, less than
of $192,070.
204 (1967) (quoting Se. Fin. Co. v. Commissioner, 153 F.2d 205,
205 (5th Cir. 1946), affg. 4 T.C. 1069 (1945)), affd. 410 F. 2d
302 (6th Cir. 1969); see also sec. 301.6651-1(c)(1), Proced. &
aggregate.
exception. Id.
was not filed until July 25, 2006, more than 3 months after the
Mrs. Ajah relied on her claim that she and her husband
show that they had reasonable cause for not timely filing their
attend to the matter did not relieve petitioners from their duty
therefore, no tax was owed. Mrs. Ajah’s argument that the return
was due is misplaced. All individuals who have gross income that
5
Petitioners fail to meet the criteria for any of the
exceptions listed in sec. 6012.
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failure to timely file their 2005 Federal income tax return, and
production.
6
Because we find that there was a substantial understatement
of income tax, there is no need to discuss other attributions to
which the accuracy-related penalty would apply.
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reasonable cause and good faith if, under all the circumstances,
of the tax code. Although Mrs. Ajah is an attorney who runs her
for her to seek guidance in this complicated area. She and her
States v. Boyle, 469 U.S. at 251 (citing Haywood Lumber & Mining
Co. v. Commissioner, 178 F.2d 769, 771 (2d Cir. 1950), modifying