- 5 -
instant case, the estate tax return was filed on November 5,
1989, 7 months and 9 days after the extended due date of March
26, 1989. The addition to tax does not apply if the failure to
file on time is due to reasonable cause and not willful neglect.
Sec. 6651(a)(1). Whether a delinquent filing was due to
reasonable cause and not willful neglect is a factual matter to
be decided based upon a review of the entire record. Estate of
Duttenhofer v. Commissioner, 49 T.C. 200, 204 (1967), affd. 410
F.2d 302 (6th Cir. 1969). Petitioner bears the burden of proving
that respondent's determination is incorrect. Rule 142(a); Welch
v. Helvering, 290 U.S. 111, 115 (1933). In the instant case,
respondent does not argue that the dilatory filing was due to
willful neglect. Consequently, we need only decide whether
petitioner has established that its delinquent filing was due to
reasonable cause.
In order to show reasonable cause for the late filing, the
estate must show that, despite its exercise of ordinary business
care and prudence, it was unable to file the 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. Petitioner has not
satisfied this burden.
Petitioner principally argues that Hastings advised
Mehrafsar that Mehrafsar could postpone the due date of the
return by 12 months, and that, although Hastings' advice was
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011