Franklin D. and Sandra M. Terrell - Page 5

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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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