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it is shown that the failure is due to reasonable cause and not
due to willful neglect. A failure to file in a timely manner is
due to "reasonable cause" if the taxpayer exercised "ordinary
business care and prudence" and was nevertheless unable to file
the return within the time prescribed. United States v. Boyle,
469 U.S. 241, 245 (1985); sec. 301.6651-1(c)(1), Proced. & Admin.
Regs. The burden of proof is on the taxpayer. Rule 142(a);
Ehrlich v. Commissioner, 31 T.C. 536, 540 (1958).
Petitioner claims that its failure to file its return in a
timely manner was due to reasonable cause in that respondent
failed to stamp on petitioner's first extension request that
further extensions would be available only in limited
circumstances. David, however, was an accountant. He was
experienced and knowledgeable in tax matters. Further,
petitioner knew that the second extension request had to be
approved by respondent and that, if it were not approved, a
return would have to be filed immediately. Whether respondent
informed petitioner of the likelihood that a second extension
would be granted is not determinative. Petitioner simply failed
to meet the deadline for filing under the first extension.
Consequently, petitioner's contention is without merit, and
petitioner is liable for the section 6651 addition to tax.
We have considered petitioner's other arguments and found
them to be without merit.
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