Daniel R. Leavell and Eva Lovene Leavell - Page 21

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             Having business problems does not relieve taxpayers of the                                   
             obligation to file timely Federal income tax returns.  We                                    
             sustain respondent's imposition of the addition to tax under                                 
             section 6651(a)(1) for 1985 and 1986.                                                        
                  Petitioners argue that they relied on their accountant to                               
             prepare proper income tax returns.  The evidence, however,                                   
             indicates that petitioners did not provide their accountant                                  
             with accurate and complete records from which accurate tax                                   
             returns could be prepared.  See Hull v. Commissioner, T.C.                                   
             Memo. 1991-582; Auld v. Commissioner, T.C. Memo. 1978-508.  We                               
             sustain respondent's imposition of the additions to tax under                                
             section 6653(a)(1) and (2) for 1985, and under section                                       
             6653(a)(1)(A) and (B) for 1986 and 1987.                                                     
                  Petitioners have not established that they had substantial                              
             authority for the positions taken on their joint Federal income                              
             tax returns, nor that the relevant facts were adequately                                     
             disclosed on their returns.  For each year in issue, we sustain                              
             the additions to tax under section 6661.                                                     

                                                        An appropriate order denying                      
                                                  petitioners' motion for                                 
                                                  reconsideration will be issued,                         
                                                  and decision will be entered                            
                                                  under Rule 155.                                         







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