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determinations. Rule 142(a). Accordingly, we hold that
petitioner received and failed to report income in the amounts
determined by respondent for the taxable years in issue.
The second issue for decision is whether petitioner is
liable for the section 6651(a)(1) additions to tax for failure to
file his 1987 and 1988 returns.
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a return, unless the taxpayer establishes that such
failure is due to reasonable cause and not due to willful
neglect. "Reasonable cause" requires the taxpayer to demonstrate
that he exercised ordinary business care and prudence and was
nonetheless unable to file a return within the prescribed time.
United States v. Boyle, 469 U.S. 241, 245-246 (1985). "Willful
neglect" means a conscious, intentional failure or reckless
indifference. Id. at 246. The addition to tax equals 5 percent
of the tax required to be shown on the return if the failure to
file is for not more than 1 month, with an additional 5 percent
for each additional month or fraction of a month during which the
failure to file continues, not to exceed a maximum of 25 percent.
Sec. 6651(a)(1).
Based on the record, we find that petitioner has failed to
prove that his failure to file his returns was not due to willful
neglect or that such failure was due to reasonable cause. We
therefore hold that petitioner is liable for the section
6651(a)(1) additions to tax.
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