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In this case, petitioner has not demonstrated an absence of
fault. Petitioner made an ill-informed decision to concentrate
on running his business while ignoring his tax-filing obligation.
Petitioner failed to take any steps to prepare or file his tax
return by the extended deadline. At trial, petitioner explained
this failure by pointing out that he was "too busy to * * * do
everything." Reflecting the wisdom of hindsight, petitioner
admitted at trial that, if he had known his failure to file his
return was going to cost him so much money, he would have closed
his business for a week and taken the steps necessary to file his
return on time.
Petitioner's conduct and his justification of it do not
reflect the ordinary business care and prudence necessary to
establish reasonable cause under section 6651(a)(1). Since
petitioner has failed to show that his failure to file his return
for 1993 was due to reasonable cause, we hold that petitioner is
liable for the addition to tax under section 6651(a)(1) for 1993.
To reflect the foregoing and concessions set forth in the
stipulations of the parties,
Decision will be entered
in accordance with this
opinion and the stipulations
of the parties.
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Last modified: May 25, 2011