- 19 - testified that although Mr. Clay was physically ill during 1992 and 1993, he remained mentally sharp until his death. Petitioner and the cotrustees frequently inquired as to Mr. Clay’s progress regarding the necessary tax documents. Mr. Clay repeatedly assured them of his progress. Absent Mr. Clay’s illness, undoubtedly, the appropriate documents would have been prepared and filed. We have held that the inability of a taxpayer to obtain records may constitute reasonable cause to justify setting aside the failure to timely file addition to tax. See, e.g., Berenbeim v. Commissioner, T.C. Memo. 1992-272; Connor v. Commissioner, T.C. Memo. 1982-302. We conclude that petitioner was unable to obtain the necessary trust records from Mr. Clay, and consequently had reasonable cause not to file her 1992 individual tax return, and did not willfully neglect her duty to do so. On the basis of the record before us, we conclude that petitioner exercised “ordinary business care and prudence”, but because of circumstances beyond her control, she was unable to file her tax return timely. Accordingly, we hold that petitioner is not liable for the addition to tax and respondent's section 6651(a) determination is not sustained.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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