- 10 - in the silver market. The record also shows that Mr. Crowl would share the profits in the event that the investment proved profitable. Thus, it appears to us that petitioner and Mr. Crowl transacted business for the purposes of investing in the silver market and that no debtor-creditor relationship existed between them. Nor has petitioner established that any debt owed him by Mr. Crowl became worthless during the year in issue. We find for respondent on this issue. 4. Delinquency Penalty Respondent determined that petitioner is liable for an addition to tax under section 6651(a)(1). Respondent determined that petitioner failed to file timely his 1987 Federal income tax return, and that he failed to show that his delinquency was due to reasonable cause. Section 6651(a)(1) imposes an addition to tax for failure to file a tax return on time. The addition to tax imposed under section 6651(a)(1) does not apply if petitioner can prove that his failure to file was: (1) Due to reasonable cause, and (2) not due to willful neglect. Sec. 6651(a); United States v. Boyle, 469 U.S. 241, 245 (1985); In re Stanford, 979 F.2d 1511, 1512 (11th Cir. 1992). A failure to file timely a Federal income tax return is due to reasonable cause if the taxpayer exercised ordinary business care and prudence, and nevertheless, was unable to file the return within the prescribed time. In re Stanford, supra at 1514; sec. 301.6651-1(c)(1), Proced. & Admin. Regs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011