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legally impaired (as a result of mental illness, traumatic
epilepsy, and brain damage) from comprehending or understanding
the nature and requirements of the Internal Revenue Code.”
A taxpayer’s mental incapacity may constitute “reasonable
cause” for failure to file returns. Bloch v. Commissioner, T.C.
Memo. 1992-1. Judging by Mrs. Beck’s demeanor at trial and her
testimony, which was lucid and coherent, displaying at most
naivety and poor judgment rather than mental incompetence, and in
the absence of any medical evidence to the contrary,13 we are
unconvinced that Mrs. Beck was so mentally impaired that she
could not appreciate her legal duty to file returns and pay
taxes, particularly during the years in issue, when she was
actively engaged in the conduct of Dr. Beck’s dental practice.
Mrs. Beck has not established that she had reasonable cause
for her failure to file timely returns. Accordingly, Mrs. Beck
is liable for the section 6651(a)(1) addition to tax for each
year in issue.
13 At trial, the Court admitted into evidence, over
respondent’s objections, a letter that Dr. Beck alleged was sent
to respondent’s auditing agent, which Dr. Beck alleged to contain
medical reports regarding Mrs. Beck’s “emotional instability and
sensitivity.” After trial, it was discovered that Dr. Beck had
failed to relinquish to the Court this exhibit and other exhibits
that he had proffered and that had been marked for
identification. On Nov. 1, 1999, and Nov. 3, 1999, the Court’s
trial clerk contacted Dr. Beck and requested that he return the
exhibits to complete the record in this case. After receiving no
response, on Feb. 9, 2000, the Court ordered the missing exhibits
stricken from the record of these cases.
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