The “Unmeritorious Pensioner” Case

The “Unmeritorious Pensioner” Case

Petitioner: Elmer Jon Buckardt

Memo Number: 2010-145

Decision Date: July 1, 2010

Burden of Proof: Taxpayer

Case in a Nutshell:

IRS claims entitlement to a tax deficiency as well as various penalties. Taxpayer seeks to mitigate by compelling the court to support his claim that reported pension income was not taxable because it was not from a “taxable specific source.”

Discussion in a Nutshell:

In January of 2008 the taxpayer filed forms 1040 for the years 2003, 2004, and 2005 with zeros in every box except for standard deduction and exemption. To support his positions the taxpayer utilized arguments that have been repeatedly held by the tax court to be frivolous and groundless.

Decision in a Nutshell:

Although the IRS prevailed in the deficiency assessment, several penalties were disallowed because the IRS failed to meet the burden of production of evidence supporting the assessments. A zero income return is not considered a valid return for the purpose of avoiding failure to file penalties.

Take Aways:

The IRS bears the burden of proof with respect to additions to tax for failure to file, late payment, and failure to pay estimated taxes. A taxpayer’s challenge to these will prevail unless the IRS produces evidence that the addition is appropriate.