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If the nature of the business requires that its
services are rendered or its goods are delivered at a
facility with unique or special characteristics, this
is a further and weighty consideration in finding that
it is the delivery point or facility, not the
taxpayer’s residence, where the most important
functions of the business are undertaken.
Id. at 176.
The principal activities relating to petitioner’s truck
driving activity consisted of the delivery of cargo to various
destinations throughout the United States. Moreover, petitioner
was paid solely for his time on the road. Although the Court is
satisfied that petitioner utilized his home office space for the
administrative duties related to his trucking activity, it is
evident that the most important aspects, as well as a substantial
majority, of petitioner’s activities in connection with his
trucking activity were performed outside of his home office.
Therefore, the Court sustains respondent on this issue.
The final issue is whether petitioner is liable for the
addition to tax under section 6651(a)(1) for his failure to file
timely his 1994 Federal income tax return. Section 6651(a)(1)
imposes an addition to tax for a taxpayer's failure to file
timely returns, unless the taxpayer can establish that such
failure "is due to reasonable cause and not due to willful
neglect."
Reasonable cause exists where the taxpayer exercises
ordinary business care and prudence that still renders one unable
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Last modified: May 25, 2011