Robert B. Keenan - Page 13

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          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.            





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