Flahertys Arden Bowl, Inc. - Page 16




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          failing to file a timely income tax return, unless such failure             
          to file is due to reasonable cause and not due to willful                   
          neglect.  The addition to tax is 5 percent of the amount required           
          to be reported on the return for each month or fraction thereof             
          during which such failure to file continues, not to exceed 25               
          percent in the aggregate.  See sec. 6651(a)(1); United States v.            
          Boyle, 469 U.S. 241 (1985).                                                 
               There is, and we do not understand respondent to argue                 
          otherwise, no evidence indicating that petitioner’s failure to              
          file was the result of willful neglect.  Thus, the question is              
          whether petitioner has demonstrated reasonable cause for the                
          failure.  The failure to file flows directly from Mr. Braun’s               
          advice that petitioner incurred no liability from the loan                  
          transactions.                                                               
               Petitioner argues that its reliance on that advice                     
          constituted reasonable cause.  We have held in various situations           
          that reliance on expert advice constitutes reasonable cause.                
          See, e.g., Citrus Valley Estates, Inc. v. Commissioner, 99 T.C.             
          379, 463 (1992); see also United States v. Boyle, supra at 250-             
          251.  Mr. Braun is a lawyer with extensive experience in the area           
          of retirement plans.  He was fully aware of all of the relevant             
          facts.  He researched the issue and advised petitioner that he              
          believed the loans would not violate any of the provisions of               
          ERISA or cause any tax liability under section 4975.  The ERISA             






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