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property,4 and distributions from qualified retirement plans5
were includable in petitioner's gross income for the years in
issue, and that the distributions from qualified retirement plans
were subject to additional tax under section 72(t). Petitioner
presented neither evidence nor argument that showed error in
respondent's determinations. Consequently, with the one
modification to reflect respondent's concession as to
petitioner's increased basis in the property sold, we sustain the
deficiencies determined by respondent.
II. Section 6651 -- Failure To File
Respondent determined that petitioner is liable for
additions to tax under section 6651(a)(1). Section 6651(a)(1)
imposes an addition to tax for failure to file a return timely
unless the taxpayer shows that the failure was due to reasonable
cause and not willful neglect. See Kotmair v. Commissioner,
86 T.C. 1253, 1263 (1986). A failure to file timely is due to
reasonable cause if the taxpayer exercised ordinary business care
and prudence and, nevertheless, was unable to file the return
4 At trial, petitioner testified that he had an additional
$21,000 basis in the property due to a corresponding payment made
to his ex-wife as part of their divorce settlement. Petitioner
submitted no documentation or additional evidence in support of
his claim, and we do not find his testimony credible. Therefore,
petitioner realized gain in the amount of $64,400, and because
petitioner has failed to show any exemption from the recognition
of that gain, it is fully includable in his gross income for
1993. See secs. 61(a)(3), 1034, 1221.
5 See secs. 72, 402(a), 408(d)(1).
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