-38-
amounts determined by respondent, even if petitioner paid
substantial deductible business expenses in those years.6
Therefore, even if petitioner's evidence had convinced us that he
had paid substantial business expenses in 1993-94, the conditions
for applying the Cohan rule for those years would not be
satisfied. See Norgaard v. Commissioner, T.C. Memo. 1989-390,
affd. on this issue and revd. in part 939 F.2d 874 (9th Cir.
1991) (Cohan rule not applicable to estimate gambling losses
where taxpayer had not established his actual gambling gross
receipts).
For all these reasons, we find that petitioner is not
entitled to any additional deductions for 1993 and 1994;
respondent's deficiency determinations for those years are
sustained.
IV. Does the Section 6651(a)(1) Addition Apply for 1994?
Section 6651(a)(1) imposes an addition to tax for the
failure to file an income tax return within the time prescribed
by law, unless it is shown that the failure is due to reasonable
cause. A failure to file is due to reasonable cause if the
taxpayer exercised ordinary business care and prudence and was
nevertheless unable to file the return within the prescribed
time. See sec. 301.6651-1(c)(1), Proced. & Admin. Regs. The
taxpayer bears the burden of showing that the failure was due to
6 This could not have been the case for 1989-92, because the
parties stipulated that petitioner's total business gross
receipts for each of those years were equal to the amounts
determined by respondent.
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