- 43 -
T.C. 899, 913 (1989); sec. 301.6651-1(c)(1), Proced. & Admin.
Regs.
Petitioners argue that they had reasonable cause for filing
their 1987 return late because petitioner husband believed that
he had no tax liability for 1987 in view of his financial
difficulties and bankruptcy. They contend that they had
reasonable cause for filing their 1989 return late because their
infant son Antonino was gravely ill in 1989, was hospitalized and
had heart surgery in April 1990, and died in August 1990.
Illness of a taxpayer or member of his or her immediate
family may be reasonable cause for late filing if the taxpayer
shows that he or she cannot file a timely return because of such
illness. Williams v. Commissioner, 16 T.C. 893, 906 (1951);
Hayes v. Commissioner, T.C. Memo. 1967-80. While incompetence,
mental illness, alcoholism, or other incapacity may excuse a
taxpayer from late filing, a taxpayer's selective inability to
meet his tax obligations when he can conduct normal business
activities does not excuse his late filing or failure to file.
Kemmerer v. Commissioner, T.C. Memo. 1993-394; Bloch v.
Commissioner, T.C. Memo. 1992-1; Bear v. Commissioner, T.C.
Memo. 1992-690, affd. without published opinion 19 F.3d 26 (9th
Cir. 1994); Fambrough v. Commissioner, T.C. Memo. 1990-104.
Petitioner husband had business and financial problems
during the time petitioners should have filed their tax return
for 1987. However, he continued to operate his real estate
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