- 8 -
made. Vanicek v. Commissioner, supra. More importantly, there
is nothing in the record to evidence these claimed expenditures.
Accordingly, we conclude that petitioners are not entitled to
deductions for "other expenses" for casual labor.
Section 6651(a)(1) imposes an addition to tax for failure to
file a return on time. The addition equals 5 percent for each
month that the return is late, not to exceed 25 percent.
Additions to tax under sections 6651(a)(1) are imposed unless the
taxpayer establishes that the failure was due to reasonable cause
and not willful neglect. "Reasonable cause" requires the
taxpayers to demonstrate that they exercised ordinary business
care and prudence. United States v. Boyle, 469 U.S. 241, 246
(1985). Willful neglect is defined as a "conscious, intentional
failure or reckless indifference." United States v. Boyle, supra
at 245.
Ruby stated that "to the best of my knowledge, my tax return
was filed on time." No other testimony or evidence was offered
to establish that it was timely filed. The parties stipulated
that petitioners did not request an extension of the date to file
their 1993 return, that petitioners' 1993 return was mailed to
the Service in an envelope bearing a postmark date of June 7,
1994, and that respondent received petitioners' 1993 return on
June 13, 1994. A copy of petitioners' 1993 return shows the
signatory dates to be June 4, 1994.
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