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on a prohibited transaction, the taxable period ends upon
issuance of a notice of deficiency). Petitioner did not file
an excise tax return for any of these years.
With respect to the excise tax returns which were due for
1990 and 1991, we believe that petitioner's failure to file
these returns was reasonable. The Supreme Court had not yet
decided Keystone by the due dates for these returns; i.e.,
July 31, 1991 and 1992, respectively. See sec. 54.6011-1(b),
Pension Excise Tax Regs.; see also Instructions to Form 5330,
at 2 ("For taxes due under sections * * * 4975 * * *, file
Form 5330 by the last day of the 7th month after the end of the
tax year of the employer or other person who must file this
return."). Although Keystone later became the law that we
apply herein, we do not impute the knowledge of this law to
petitioner with respect to 1990 and 1991. Reasonable cause
and the absence of willful neglect are gauged at the time that
a return is due, and we bear in mind only the information that
the taxpayer knew (or could have known) on that date. See
Ellwest Stereo Theatres, Inc. v. Commissioner, T.C. Memo.
1995-610; see also Industrial Indem. v. Snyder, 54 AFTR 2d
84-5127, 84-1 USTC par. 9507 (E.D. Wash. 1984). The mere fact
that an individual never files a return for a given year does
not necessarily mean that he or she is liable under section
6651(a)(1) for an addition to that year's tax. Although
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