- 6 - merely by designating his business income as "trust" income he would not have to report it. Petitioner did not file a trust return, nor did either petitioner consult an accountant or an attorney to determine whether the $183,585 should be reported. In short, petitioners did not do what a reasonable and ordinarily prudent person would do under the circumstances. Neely v. Commissioner, 85 T.C. 934, 947 (1985). Moreover, though instructed on line 12 of Form 1040 to do so, petitioners did not file a Schedule C, even as to the business income of $16,147 which they did report. We find that petitioners are liable for the negligence penalty. To reflect the foregoing, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6
Last modified: May 25, 2011