James C. Estrada - Page 9

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          Immediately following petitioner's counsel's examination of the             
          witness, however, Oania confirmed during re-cross-examination               
          that he actually works with and shares compensation with                    
          petitioner.                                                                 
               Q    Mr. Oania, when you divide up the funds, the person               
                    that you sit down with, or stand up with when you                 
                    divide up the funds is James C. Estrada?                          
               A    The person, yes.                                                  
               On the basis of the record, we find that petitioner                    
          performed services for NAA, and was compensated for performing              
          them.  Since petitioner treated the money "paid" to the CRNA                
          Trust as his own, the total amount "paid" to the CRNA Trust                 
          during the years in issue was includable in petitioner's gross              
          income.                                                                     
          2.  Addition to Tax Under Section 6651(a)(1)                                
               Respondent determined additions to tax under section 6651(a)           
          for petitioner's 1991 and 1992 taxable years.  In order to avoid            
          this addition to tax, petitioner must prove that his failure to             
          file was:  (1) Due to reasonable cause and (2) not due to willful           
          neglect.  Sec. 6651(a); Rule 142(a); United States v. Boyle, 469            
          U.S. 241, 245 (1985); United States v. Nordbrock, 38 F.3d 440               
          (9th Cir. 1994).  A failure to file a timely 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.  Sec. 301.6651-              
          1(c)(1), Proced. & Admin. Regs.   Willful neglect means a                   




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