- 11 -
and $32,866 for 1994 to $20,000 for each of the taxable years in
issue.
Finally, respondent determined that petitioner’s 1993 and
1994 returns were each delinquent by more than 5 months. Section
6651(a)(1) imposes an addition to tax for failure to file a
timely return of 5 percent of the tax due for each month a return
is delinquent, not to exceed 25 percent. The addition does not
apply if the failure to timely file is due to reasonable cause
and not due to willful neglect. Sec. 6651(a)(1). Petitioner has
the burden of proving reasonable cause and the lack of willful
neglect. United States v. Boyle, 469 U.S. 241, 245 (1985);
Baldwin v. Commissioner, 84 T.C. 859, 870 (1985). To prove
"reasonable cause", taxpayers must show they exercised ordinary
business care and prudence and were nevertheless unable to file
the return within the statutorily prescribed time. Crocker v.
Commissioner, 92 T.C. 899, 913 (1989); sec. 301.6651-1(c)(1),
Proced. & Admin. Regs.
Petitioner did not file timely 1993 and 1994 income tax
returns, and the delinquent return(s) filed by petitioner were
each more than 5 months after the due date. Having considered
petitioner's reasons for not filing, we also find that petitioner
did not have reasonable cause for failing to file timely 1993 and
1994 Federal income tax returns.
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