Document summaries for the week of Feb. 11, 2019
Court finds couple who filed ‘zero returns’ liable for tax deficiencies and penalties
The Tax Court held that arguments presented by a tax protestor couple who did not report their income, and instead filed “zero returns” claiming refunds of withheld taxes, were frivolous, and the couple were therefore liable for tax deficiencies the IRS assessed. The court also held that, while the couple were not liable for penalties under Sec. 6663(a) because they did not file valid returns for any of the years at issue, they were liable under Sec. 6651(f) for fraudulent-failure-to-file penalties and for late-payment penalties under Sec. 6651(a)(2). Hendrickson, T.C. Memo. 2019-10 (2/11/19).
Taxpayer advocate’s annual report to Congress
National Taxpayer Advocate Nina Olson released her annual report to Congress, cataloguing problems encountered by taxpayers and making recommendations. Annual Report to Congress, 2018 (2/12/19).