- 21 - records or tax returns, that he relied on Mrs. Ruckman for these matters, and that he has done so for some time. The testimony of petitioners' accountant corroborates the foregoing. In 1991, the only year in which an omission of income occurred, Mrs. Ruckman was diagnosed with cancer, underwent surgery twice, and commenced radiation and chemotherapy treatments that extended through March 1992, when the 1991 tax returns for Ruckman, Inc., and petitioners were completed.12 With respect to this period, and the failure to report the Happy Trucking dispatch income, Mrs. Ruckman testified that "I didn't know for a couple of years really how much had gotten away from me, because I didn't know that I wasn't capable of what I was trying to do." As to Mr. Ruckman, we assess his responsibilities with respect to the omitted income in light of his established practice of relying on his wife for record keeping and the undoubted impact on him of having a spouse battling a life- threatening illness during the period. In the circumstances of this case, we conclude that petitioners acted in good faith and had reasonable cause in failing to report the income at issue. Accordingly, we will not sustain respondent's determination of the accuracy-related penalty under section 6662(b)(1). Decision will be entered under Rule 155. 12The signature dates on Ruckman, Inc.'s 1991 tax return and on petitioners' personal joint return for that year indicate that both returns were signed in March 1992.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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