Inverworld, Inc., et al. - Page 158

                                                - 234 -                                                   
            to file the required tax return within the prescribed time.                                   
            United States v. Boyle, 469 U.S. 241, 246 (1985); Crocker v.                                  
            Commissioner, 92 T.C. 899, 913 (1989); sec. 301.6651-1(c)(1),                                 
            Proced. & Admin. Regs.  Alternatively, a taxpayer can establish                               
            reasonable cause by showing reasonable reliance on an                                         
            accountant's or attorney's advice that filing a return was not                                
            necessary, even when such advice turned out to have been                                      
            mistaken.  United States v. Boyle, supra at 250.  Willful neglect                             
            has been defined as a conscious, intentional failure or reckless                              
            indifference to timely filing a return.  Id.  The questions of                                
            whether petitioners have acted with "reasonable cause" and not                                
            "willful neglect" are questions of fact, and petitioners have the                             
            burden of proof.  Rule 142(a); Lee v. Commissioner, 227 F.2d 181,                             
            184 (5th Cir. 1955), affg. a Memorandum Opinion of this Court.                                
                  It is undisputed that (1) LTD did not file corporate income                             
            tax returns for taxable years ended June 30, 1987 through 1989,                               
            (2) LTD did not file withholding tax returns for calendar years                               
            1984 through 1989, and (3) INC did not file withholding tax                                   
            returns for calendar years 1987 through 1989.  We have held that                              
            LTD is liable for corporate income tax for taxable years ended                                
            June 30, 1987 through 1989, that LTD is liable as a withholding                               
            agent for withholding tax on the dividend it paid to its                                      
            shareholders in calendar years 1985 and 1986, and that INC is not                             
            liable as a withholding agent for withholding tax.  Consequently,                             
            we must decide whether LTD's failure to file corporate income tax                             
            returns for taxable years ended June 30, 1987 through 1989 and                                




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