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Being “too busy”, however, does not constitute reasonable cause
for failure to file timely returns. See Dustin v. Commissioner,
53 T.C. 491, 507 (1969); Olsen v. Commissioner, T.C. Memo. 1993-
432. As a practicing attorney, petitioner should have been
alert to his legal obligations to file Federal income tax
returns. We sustain respondent’s determinations on this issue.
Sections 6653(a)(1) and 6662
For returns due after December 31, 1988, section 6653(a)(1)
imposes an addition to tax equal to 5 percent of the
underpayment if any part of any underpayment is “due to
negligence or disregard of rules or regulations”. For returns
due after December 31, 1989, section 6662 imposes a penalty
equal to 20 percent of the portion of the underpayment that is
attributable to negligence or disregard of rules or regulations.
Under both sections 6653(a)(3) and 6662(c), negligence includes
any failure to make a reasonable attempt to comply with the
provisions of the Internal Revenue Code, and disregard includes
any careless, reckless, or intentional disregard.
A taxpayer’s failure to keep adequate books and records may
constitute negligence and also indicates disregard of the rules
or regulations requiring a taxpayer to keep records sufficient
to establish, among other things, the taxpayer’s gross income
and deductions. See Crocker v. Commissioner, 92 T.C. 899, 917
(1989).
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