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advice of Mr. Gargiulo that it was unnecessary to file a tax
return for 1992.
Even though we have found that it was not reasonable for
petitioner to rely on the advice of Mr. Gargiulo with respect to
his failure to file a 1992 tax return, we nonetheless find on the
record before us that that failure was due to reasonable cause
and not to willful neglect. Although petitioner was aware of the
circumstances relating to du Pont's decision to make the 1992
assistance payment to him, he also knew that du Pont decided in
November 1992 to stop paying Benlate claims. Du Pont's decision
to stop paying Benlate claims, coupled with the fact that du Pont
did not issue a Form 1099 to petitioner for 1992 with respect to
the $150,000 assistance payment, could have raised a reasonable
question in the mind of petitioner, who is not an expert in tax
matters, as to whether that payment was income for 1992. On the
record before us, we find that petitioner's failure to file a tax
return for 1992 was due to reasonable cause and not to willful
neglect. Accordingly, we hold that petitioner is not liable for
1992 for the addition to tax under section 6651(a)(1).
The $1,623,203 Settlement Payment
Respondent determined that the settlement payment of
$1,623,203 which petitioner received from du Pont during 1994 is
to be included in his gross income for that year. It is pe-
titioner's position that that payment constitutes an amount of
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