Mailman v. Commissioner
United States Tax Court
P, a compulsive gambler, failed to report embezzled funds used for his gambling on his Federal income tax returns for taxable years 1981, 1982, and 1983. P concedes liability for income tax deficiencies and additions to tax for negligence. P contends that R acted unreasonably in failing to waive the addition to tax pursuant to sec. 6661, I.R.C. 1954. R contends his discretion is absolute and not subject to judicial review.
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P, a compulsive gambler, failed to report embezzled funds used for his gambling on his Federal income tax returns for taxable years 1981, 1982, and 1983. P concedes liability for income tax deficiencies and additions to tax for negligence. P contends that R acted unreasonably in failing to waive the addition to tax pursuant to sec. 6661, I.R.C. 1954. R contends his discretion is absolute and not subject to judicial review. Held, R's refusal to grant a waiver of the sec. 6661 addition to tax pursuant to sec. 6661(c) is subject to judicial review. Held, further, the appropriate standard of…
1Opinion of the Court
WILLIAMS, Judge:
The Commissioner determined deficiencies and additions to tax in petitioner’s Federal income taxes as follows:
_Additions to tax_
Year Deficiency Sec. 6653(a)(1) 1 Sec. 6653(a)(2) Sec. 6661
1981 $8,261 $413 50 percent of — the interest on $8,261
1982 88,746 4,437 50 percent of $22,187 the interest on 88,746
1983 11,144 557 50 percent of 2,786 the interest on 11,144
After concessions, the sole issue we must address is whether petitioner is liable for the additions to tax pursuant to section 6661.
FINDINGS OF FACT
Some of the facts in this case have been stipulated and are so found.…
2Cases cited7 opinions
- Abbott Laboratories v. GardnerSupreme Court of the United States · 1967
- James v. United StatesSupreme Court of the United States · 1961
- Dunlop v. BachowskiSupreme Court of the United States · 1975
- Pallottini v. CommissionerUnited States Tax Court · 1988
- Estate of Gardner v. CommissionerUnited States Tax Court · 1984
2 more not listed; retrieve them via the Exa API.
3Cited by210 opinions
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- James Karr and Nancy L. Karr v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1991
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