Jose M. Vidaurre and Ana Maria Vidaurre - Page 6

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          over the age of 55, the property was not their principal                    
          residence; petitioners are thus ineligible for the section 121              

          exclusion5 and must recognize their gain.                                   
          Issue 2.  Addition to Tax Under Section 6651(a)(1)                          
               Respondent determined that petitioners are liable for an               
          addition to tax under section 6651(a)(1).  Section 6651(a)(1)               
          provides for an addition to tax for failure to timely file.                 
          However, the addition is not applicable if "it is shown that such           
          failure is due to reasonable cause and not due to willful                   
          neglect."  Sec. 6651(a)(1).  Petitioners have the burden of                 
          proving such failure was due to reasonable cause.  Rule 142(a);             
          United States v. Boyle, 469 U.S. 241, 245 (1985).  The amount of            
          the addition is 5 percent for each month or fraction of a month             
          for which the return is delinquent, not to exceed 25 percent in             
          the aggregate.  Sec. 6651(a)(1).  Calendar year individual                  
          taxpayers must file their Federal income tax return by April 15,            

          5  Sec. 121(a) provides, in pertinent part, as follows:                     
               (a) General Rule--At the election of the taxpayer, gross               
               income does not include gain from the sale or exchange of              
               property if--                                                          
                    (1) the taxpayer has attained the age of 55 before the            
               date of such sale or exchange, and                                     
                    (2) during the 5-year period ending on the date of the            
               sale or exchange, such property has been owned and used by             
               the taxpayer as his principal residence for periods                    
               aggregating 3 years or more.                                           

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