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Issue 3: Section 6651(a)
Section 6651(a)(1) imposes an addition to tax for the
failure to file an estate tax return within the time prescribed
by law, including any approved extension. The rate of the
addition to tax is 5 percent of the amount of tax required to be
shown on the return for each month or fraction thereof that the
return is late, not to exceed 25 percent in the aggregate.
However, if the delinquency is due to reasonable cause and not
due to willful neglect, the addition to tax is not imposed. As
the legal standard for reasonable cause, the regulations call on
taxpayers to show that they used "ordinary business care and
prudence". Sec. 301.6651-1(c)(1) and (2), Proced. & Admin. Regs.
Willful neglect is defined to mean a conscious, intentional
failure or reckless indifference. United States v. Boyle, 469
U.S. 241, 245 (1985). Whether petitioner acted with reasonable
cause and not due to willful neglect is a question of fact.
Estate of Cavenaugh v. Commissioner, 100 T.C. 407, 425 (1993),
affd. in part and revd. in part 51 F.3d 597 (5th Cir. 1995).
Petitioner bears the burden of showing that (1) that the failure
did not result from willful neglect and (2) that the failure was
due to reasonable cause. Rule 142(a); United States v. Boyle,
supra at 245 (1985).
Section 6018(a) provides that an estate tax return shall be
made if "the gross estate at the death of a citizen or resident
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