- 13 -
petitioner is not entitled to 1992 deductible losses with respect
to his foreign trusts. The letter petitioner presented at best
indicates that there was an unidentified account in which a
$521,000 loss was sustained, but there is no indication that the
account belonged to petitioner. In fact, petitioner failed to
produce any statements indicating that he had the funds in any
account in 1992. The evidence petitioner presented is insufficient
to prove that he sustained the claimed losses. Accordingly, we
hold for respondent on this issue.
Issue 7. Additions to Tax
The last issue is whether petitioner is liable for the
sections 6651(a) and 6654(a) additions to tax determined by
respondent. Respondent contends that petitioner is liable for
these additions for the years in issue; petitioner, on the other
hand, disagrees.
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a return. Petitioner can avoid the section 6651(a)(1)
additions to tax by proving that his failure to file was: (1) Due
to reasonable cause, and (2) not due to willful neglect. Sec.
6651(a)(1); Rule 142(a); United States v. Boyle, 469 U.S. 241, 245-
246 (1985); United States v. Nordbrock, 38 F.3d 440 (9th Cir.
1994). "Reasonable cause" requires a taxpayer to demonstrate that
he exercised ordinary business care and prudence and was
nevertheless unable to file a return within the prescribed time.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011