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cause existed for the untimely filing. Paula Constr. Co. v.
Commissioner, 58 T.C. 1055, 1061 (1972), affd. without published
opinion 474 F.2d 1345 (5th Cir. 1973). In order to establish
reasonable cause, petitioners must show that they exercised
ordinary business care and prudence and were nevertheless unable
to file the return by the prescribed date. Crocker v.
Commissioner, 92 T.C. 899, 913 (1989); sec. 301.6651-1(c)(1),
Proced. & Admin. Regs.
Petitioners advance three arguments with respect to this
issue. First, petitioners argue that their failure to timely
file their 1982 return was due to Bauman’s preoccupation with his
father’s ailing health and that such preoccupation constitutes
sufficient cause to excuse their untimely filing. Petitioners
further argue that the late filing addition to tax should not be
applied to them because their 1982 return was in fact filed prior
to the expiration of the automatic 4-month extension period that
they would have received had they filed an application for an
extension of time to file. Finally, petitioners argue that the
late filing addition to tax should not be applied to them because
their explanation for the untimely filing was accepted by an
agent for respondent when their 1982 return was being audited in
1983.
Respondent, in contrast, contends that petitioners’ failure
to timely file their 1982 return was not due to reasonable cause,
but rather due to willful neglect. Respondent explains that
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