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care and prudence. See sec. 301.6651-1(c)(1), Proced. & Admin.
Regs. "Willful neglect" means a "conscious, intentional failure
or reckless indifference." United States v. Boyle, 469 U.S. 241,
245 (1985). The question of whether a failure to file a timely
return is due to reasonable cause and not willful neglect is one
of fact, on which petitioners bear the burden of proof. See Rule
142(a); Commissioner v. Walker, 326 F.2d 261, 264 (9th Cir.
1964), affg. in part and reversing in part 37 T.C. 962 (1962);
BJR Corp. v. Commissioner, 67 T.C. 111, 131 (1976).
At trial, Mr. Terrell admitted on direct examination that
there was no reasonable cause for petitioners' failure to timely
file their 1992 and 1993 returns. However, petitioners attempt
to establish, by Mr. Terrell's testimony, that their failure to
file their 1991 return was due to riots and fires occurring near
their home during 1991 and the subsequent relocation of
petitioners and their family to Arizona.
We disagree. Mr. Terrell's testimony fails to explain how
the fires and riots prevented them from timely filing their
returns or how these occurrences prevented them from filing an
extension to file their 1991 return. Moreover, the record shows
that despite the riots and fires occurring near petitioners'
home, Mr. Terrell's business records were unaffected and were
taken with petitioners to Arizona. The fact that petitioners had
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