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the Schedule C deduction for health insurance premiums and uphold
the allowance of an adjustment to income for self-employed health
insurance pursuant to section 162(l).
With regard to the addition to tax for failure to file a
timely return pursuant to section 6651, the addition to tax will
apply unless the taxpayer can show that the failure to file a
timely return was due to reasonable cause and not to willful
neglect. Sec. 6651(a)(1); Rule 142(a). Petitioner indicated
that he filed his return late because he did not think he owed
any tax. A taxpayer's belief that a return is not required to be
filed may constitute reasonable cause under section 6651(a)(1),
if supported by advice from a competent adviser who has been
informed of the relevant facts. Beales v. Commissioner, T.C.
Memo. 1992-608. Although petitioner had his return prepared by a
professional tax service, there is no indication that the
preparer was informed of the relevant facts and that petitioner's
failure to timely file was based on competent advice.
Respondent's determination is sustained.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011