- 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.
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