Maxey v. Commissioner
United States Tax Court
Petitioners operated, through a corporation, a taxicab business during 1950 and 1951. They were unable to obtain adequate public liability insurance coverage during those years and large damage claims were pending against the corporation at the end of each year. They, nevertheless, realized both substantial gross and net income from that business as well as from other sources during both years.
Read the full summary
Petitioners operated, through a corporation, a taxicab business during 1950 and 1951. They were unable to obtain adequate public liability insurance coverage during those years and large damage claims were pending against the corporation at the end of each year. They, nevertheless, realized both substantial gross and net income from that business as well as from other sources during both years. They filed no declarations of estimated tax and made no payments of estimated tax during either year. Held, petitioners failed to show reasonable cause excusing their failure to file declarations of…
1Opinion of the Court
OPINION.
Rice, Judge:
Section 58 (a)1 provides that every individual whose gross income can reasonably be expected to exceed the amounts set forth in the statute shall file a declaration of estimated tax. The penalty for failure to file, provided by section 294 (d) (1) (A) ,2 however, is based on the amount of tax actually due and hence relates to a taxpayer’s net taxable income.
The petitioners herein stipulated that they “reasonably expected their gross income to exceed $600 during each of the years 1950 and 1951.” We think the clear import of that stipulation is that they concede they came…
2Cases cited6 opinions
- Fuller v. CommissionerUnited States Tax Court · 1953
- Fuller v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Hartley v. CommissionerUnited States Tax Court · 1954
- Hartley v. CommissionerUnited States Tax Court · 1954
- Cooper v. CommissionerUnited States Tax Court · 1956
1 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Fred N. Acker v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
- Josef C. Patchen and Aleyne E. Patchen v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- King v. CommissionerUnited States Tax Court · 1958
- Acker v. CommissionerUnited States Tax Court · 1957
- Ely v. CommissionerUnited States Tax Court · 1958
3 more not listed; retrieve them via the Exa API.