Best of TaxLetter: Excuses

HEW Deduction. On his 1975 and 1976 tax returns, Charles Greenberg fabricated what he called Health, Education and Welfare deductions "to reduce my tax to an acceptable level." (March 1980)

Stanley Grosshandler brought a hypnotist to Tax Court. Under hypnosis he said that he prepared his 1964 return in his home and gave it to a conductor on the railroad to be mailed in Chicago. The judge said that the testimony was inadequate and incredible. He decided that IRS records showing that no return had been filed was more credible. (No. 20)

Floyd Beam filed a tax protest return in 1981, substituting the words, "Object -- self incrim[ination]" and "None" or "0" for the requested information. He reported zero taxable income and tax liability. At trial, he argued (without proof) that Form 1040 had an invalid Office of Management and Budget number. The Paperwork Reduction Act of 1980 did not allow him to use a form with an invalid OMB number to compute and report his taxes. Elaine Beam asked for innocent spouse relief because she had not "totally" reviewed the return before signing it. The Supreme Court has refused to hear their appeal. (No. 72)

James Franklin told the judge that he was not a delinquent taxpayer. A taxpayer pays taxes, and he never did. (No. 43)

James Rooney had $312 of his $560 charitable contributions disallowed for lack of substantiation. Keeping a record of donations, he insisted, was unspiritual. (No. 21)