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202-203 (1970). Reasonable cause exists if a taxpayer exercised
ordinary business care and prudence and nevertheless did not
timely file a gift tax return. Hollingsworth v. Commissioner, 86
T.C. 91, 108 (1986) (citing Estate of Kerber v. United States,
717 F.2d 454, 455 (8th Cir. 1983)); sec. 301.6651-1(c)(1),
Proced. & Admin. Regs.; see Haywood Lumber & Mining Co. v.
Commissioner, 178 F.2d 769 (2d Cir. 1950). Willful neglect means
a conscious, intentional failure or reckless indifference.
United States v. Boyle, supra at 245-246; sec. 301.6651-1(c)(1),
Proced. & Admin. Regs. Whether a failure to timely file a gift
tax return was due to reasonable cause, and not to willful
neglect, is a factual matter to be decided on the basis of the
facts and circumstances of each case. The Commissioner’s
determination of an addition to tax is presumed to be correct and
must be disproven by the taxpayer. Welch v. Helvering, 290 U.S.
111, 115 (1933); Epstein v. Commissioner, 53 T.C. 459, 477
(1969).
“Courts have frequently held that `reasonable cause’ is
established when a taxpayer shows that he reasonably relied on
the advice of an accountant or attorney that it was unnecessary
to file a return, even when such advice turned out to have been
mistaken.” United States v. Boyle, supra at 250 (citing United
States v. Kroll, 547 F.2d 393, 395-396 (7th Cir. 1977));
Commissioner v. American Association of Engg. Employment, Inc.,
204 F.2d 19, 21 (7th Cir. 1953); Burton Swartz Land Corp. v.
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