In its order, the district court explained that while it was sympathetic to Lindsay’s specific circumstances, the “weight of authority indicates he has failed to state a claim upon which relief can be granted.” Beginning with Boyle, 469 U.S. The district court disagreed and issued an order rejecting the magistrate judge’s report and recommendation. The magistrate judge issued a report and recommendation that the Government’s motion to dismiss be denied. 241 (1985), the Government argued that a taxpayer is not entitled to the reasonable cause defense for late filings when he relies on an agent to file a timely tax return and the deadline for filing is ascertainable by the taxpayer. Relying on the Supreme Court’s opinion in United States v. 20-50994 The IRS moved to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted and, alternatively, for summary judgment. He was imprisoned at FCI Big Spring from 1996-2000. 1 Lindsay has had multiple run-ins with the law.
Irc 6651 trial#
He demanded a jury trial and sought a refund of the penalties that he paid. He alleged that his incarceration qualified as a “disability” and that, considering his unusual circumstances, penalizing him for late filing and payments would go against equity and good conscience. In his complaint, Lindsay argued that his failure to file his tax returns and pay his taxes was due to reasonable cause and not willful neglect. He filed suit in federal district court the following year. In 2018, Lindsay was unsuccessful in obtaining a refund for the penalties that he paid to the IRS.
Irc 6651 plus#
Once Lindsay was released from prison, he eventually filed all delinquent tax returns and paid the taxes owed, plus interest and $425,307.98 in penalties. Lindsay then sued Bertelson for embezzlement and after a jury trial in 2015, he was awarded $705,414.61 in actual damages and $1 million in punitive damages. While still incarcerated, Lindsay discovered Bertelson’s malfeasance and revoked the POA in April 2014. Lindsay’s tax returns for 2012 through 2015 were not timely filed, nor were his taxes or estimated quarterly taxes timely paid. Although Bertelson assured Lindsay that he was filing his returns and paying his taxes, he was actually embezzling hundreds of thousands of dollars from him.
Irc 6651 full#
According to the terms of the POA, Bertelson had complete control of Lindsay’s bank accounts and retained full authority to “manage affairs.” While incarcerated, Lindsay directed Bertelson to file his tax returns and pay his taxes. In May 2013, he executed a Universal Power of Attorney (“POA”) appointing Keith Bertelson as his attorney in fact. FACTUAL AND PROCEDURAL HISTORY Lindsay was incarcerated 1 from April 2013 to June 2015. The district court granted the IRS’s motion to dismiss. Lindsay’s suit alleged that he was entitled to the “reasonable cause” exception to the otherwise mandatory penalties. Stewart, Circuit Judge: Jeffery Allen Lindsay sued the Internal Revenue Service (“the IRS”) to recover penalties that he paid for filing late tax returns and making late tax payments for the 2012-2015 tax years. 4:19-CV-65 Before Higginbotham, Stewart, and Wilson, Circuit Judges. Appeal from the United States District Court for the Western District of Texas USDC No. Cayce Clerk Jeffery Allen Lindsay, Plaintiff-Appellant, versus United States of America, Defendant-Appellee. Case: 20-50994 Document: 00515932476 Page: 1 Date Filed: United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit FILED JNo.