William W. Howard - Page 11

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          own use", id., so that a personal representative can be charged             
          with grand theft for converting estate assets without the consent           
          or approval of the estate's beneficiaries, id. at 1101-1103.                
               Although Mr. Howard had legal title to the estate assets in            
          his capacity as personal representative, he had no right to                 
          dispose of the estate assets for his personal use.  Mr. Howard              
          has stipulated and the record clearly shows that he spent the               
          money he withdrew from the estate for his personal use.  Under              
          State v. Lahurd, supra, when a personal representative converts             
          estate proceeds for personal use, such proceeds are the “property           
          of another”.  Consequently, Mr. Howard was not merely borrowing             
          money from himself, and he did need consents from the                       
          beneficiaries to create legitimate loans between the estate and             
          himself.                                                                    
               We also hold that petitioner is liable for the additions to            
          tax under sections 6651(a)(1) and 6654.  If a taxpayer fails to             
          file a return by the due date and cannot show that the failure is           
          due to reasonable cause and not willful neglect, then section               
          6651(a)(1) imposes an addition equal to 5 percent of the                    
          underpayment of tax for each month such failure continues, not to           
          exceed 25 percent in the aggregate.  Petitioner bears the burden            
          of proving that his failure to file a timely return was due to              
          reasonable cause and not willful neglect.  Rule 142(a); United              
          States v. Boyle, 469 U.S. 241, 245 (1985).  Petitioner did not              
          file income tax returns for 1987 and 1988.  He has offered no               



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