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with the intent to evade tax. See Tully v. Commissioner, T.C.
Memo. 1997-310 (holding petitioner liable for the fraud penalty
for failing to report income from his business of establishing
exempt organizations).
In the instant case, based on the deemed admissions, we
uphold respondent's determination of the $57,327 deficiency in
petitioner's 1993 income tax. Moreover, we conclude that
respondent has satisfied the burden of proving, by clear and
convincing evidence, that the entire underpayment of tax for the
year in issue was due to fraud. Accordingly, respondent is
entitled to partial summary judgment, and petitioner is liable
for the fraud penalty pursuant to section 6663 for the taxable
year 1993.
In the case of a taxpayer who fails to file a timely tax
return, section 6651(a)(1) provides for an addition to tax,
unless the taxpayer can demonstrate that the failure to file was
due to reasonable cause and not due to willful neglect. See sec.
6651(a)(1). The Internal Revenue Code does not define reasonable
cause, but the regulations state: "If the taxpayer exercised
ordinary business care and prudence and was nevertheless unable
to file the return within the prescribed time, then the delay is
due to reasonable cause." Sec. 301.6651-1(c)(1), Proced. &
Admin. Regs. Willful neglect is "conscious, intentional failure
or reckless indifference." United States v. Boyle, 469 U.S. 241,
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