Anargyros George Mylonas - Page 5

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          result from "willful neglect."3  United States v. Boyle, 469 U.S.           
          241, 245 (1985); Brittingham v. Commissioner, 66 T.C. 373, 415              
          (1976), affd. on other grounds 598 F.2d 1375 (5th Cir. 1979);               
          Electric & Neon, Inc. v. Commissioner, 56 T.C. 1324, 1342 (1971),           
          affd. without published opinion 496 F.2d 876 (5th Cir. 1974).               
               The term "reasonable cause" is not defined by section                  
          6651(a)(1).  However, section 301.6651-1(c)(1), Proced. & Admin.            
          Regs., gives some guidance.  The pertinent part of that                     
          regulation provides that, "If the taxpayer exercised ordinary               
          business care and prudence and was nevertheless unable to file              
          the return within the prescribed time, then the delay is due to a           
          reasonable cause."  Although the regulation does not explain what           
          constitutes "ordinary business care and prudence", the Supreme              
          Court in United States v. Boyle, supra at 246 n.4, emphasized               
          that, at a minimum, it must mean an absence of fault:                       
               Congress obviously intended to make absence of fault a                 
               prerequisite to avoidance of the late-filing penalty.                  
               * * *  A taxpayer * * * must therefore prove that his                  
               failure to file on time was the result neither of                      
               carelessness, reckless indifference, nor intentional                   
               failure.  Thus, the Service's correlation of                           
               "reasonable cause" with "ordinary business care and                    
               prudence" is consistent with Congress' intent, and over                
               40 years of case law as well.  That interpretation                     
               merits deference. [Citations omitted.]                                 



               3In view of our ruling regarding reasonable cause, we need             
          not consider whether petitioner's failure to file was due to                
          "willful neglect".                                                          




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