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the 1995 tax year was due to erroneous expert advice. We note
that at the time of trial, petitioners had not yet filed a return
for the 1995 or 1996 tax year. When asked about his failure to
file a return for the 1996 tax year, petitioner testified that
though he knew he had the liability to file a return, he had not,
and did not have a reason for his failure to file.
We find that petitioners did not exercise ordinary business
care and prudence and that petitioners' failure to file was due
to willful neglect. We therefore hold that petitioners are
liable for additions to taxes under section 6651(a)(1).
Respondent is sustained on this issue.
To reflect the foregoing,
Decisions will be entered
under Rule 155.4
4 If, under a Rule 155 computation, the recomputed
deficiencies are in excess of those set forth in the notices of
deficiency for the 1995 tax year, respondent is limited to the
deficiencies set forth in the separate notices of deficiency
because respondent failed to plead any increased deficiencies.
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