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tax return in March 2003 and did not pay the reported tax
liability until more than 2 months later. They are clearly not
eligible for abatement of interest; therefore, respondent did not
abuse his discretion in refusing to consider abatement of
interest during petitioners’ hearing.
As to the additions to tax, the Appeals officer sustained
the determination of respondent, stating:
You failed to establish that you exercised due
diligence and prudent business care or that you were
not able to pay or would have suffered an undue
hardship if you paid on the due date* * *. Mr.
Caruso’s medical condition did not disable him to the
point that rendered him unable to attend to his day-to-
day activities. Mr. Caruso’s loss of 30-year
employment occurred two years after the due date of the
subject tax and tax return.
The section 6651(a)(1) addition to tax applies where there
is a failure to file a timely return, unless the taxpayer can
establish that the failure “is due to reasonable cause and not
due to willful neglect.” Sec. 6651(a)(1). Willful neglect is
defined as “a conscious, intentional failure, or reckless
indifference.” United States v. Boyle, 469 U.S. 241, 245 (1985).
A taxpayer may establish reasonable cause by showing that,
despite the exercise of ordinary care and prudence, the taxpayer
was unable to file the required tax return within the prescribed
time. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs.; see United
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Last modified: May 25, 2011