- 17 -
to file continues, not exceeding 25 percent in the aggregate.
The addition to tax is mandatory unless it is shown "that such
failure is due to reasonable cause and not due to willful
neglect". Sec. 6651(a)(1).
To establish reasonable cause, the taxpayer must demonstrate
that he or she exercised ordinary business care and prudence and
was nonetheless unable to file a return on time. Sec. 301.6651-
1(c)(1), Proced & Admin. Regs.; see Spencer v. Commissioner, T.C.
Memo. 1994-531. A finding of reasonable cause negates willful
neglect, which has been interpreted to mean a conscious,
intentional failure or reckless indifference. United States v.
Boyle, 469 U.S. 241, 245 (1985). Whether "reasonable cause" and
lack of "willful neglect" exist is a question of fact, and the
burden of establishing these facts is on the taxpayer. Rule
142(a).
Dr. Wilkinson contends that his "underlying emotional
disturbance" constitutes reasonable cause and negates a finding
of "willful neglect".3 At trial, Dr. Wilkinson presented
evidence that during the relevant time period he suffered, and
continues to suffer, from chronic dysphoria, a mild form of
depression, and a
3 We focus on Dr. Wilkinson's "reasonable cause" argument
as to 1989. Petitioners are collaterally estopped from denying
that Dr. Wilkinson willfully failed to file a return for 1988
because of Dr. Wilkinson's conviction under sec. 7203 for 1988.
Castillo v. Commissioner, 84 T.C. 405, 409 (1985).
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011