- 14 -
subject years. We sustain respondent's determination on this
issue.
II. Section 6651(a)
Respondent determined that petitioners are 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 within the prescribed time. Sec. 301.6651-1(c)(1),
Proced. & Admin. Regs. Willful neglect is a conscious,
intentional failure or reckless indifference. United States v.
Boyle, 469 U.S. 241, 245 (1985).
Petitioners argue that they did not prepare timely tax
returns for taxable years after 1990 because it had not been
determined whether their horse activity was subject to section
183, and they did not want to prepare returns twice. Their
unwillingness to file timely a return in these circumstances does
not constitute reasonable cause under section 6651. See Rakoski
v. Commissioner, T.C. Memo. 1993-68, affd. without published
opinion 46 F.3d 1144 (9th Cir. 1995). We sustain respondent's
determination on this issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011