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receiving income but because he could not recall the exact
amounts he received from the additional sources.1
Because petitioner did not raise any of the items of
unreported income as an issue in this case, and because he
offered no evidence or arguments refuting respondent’s
determinations, we uphold respondent in this regard.
The second issue for decision is whether petitioner is
liable for the section 6651(a)(1) additions to tax for failure to
file a return for 1996 and 1997. Paragraph (1) of section
6651(a) imposes an addition to tax for failure to timely file a
return. A taxpayer may avoid the addition to tax if he
establishes that the failure to timely file is due to reasonable
cause and not due to willful neglect. “Reasonable cause”
requires the taxpayer to demonstrate that he exercised ordinary
business care and prudence and was nonetheless unable to file a
return within the prescribed time. See United States v. Boyle,
469 U.S. 241, 246 (1985). “Willful neglect” means a conscious,
intentional failure or reckless indifference. See id. at 245.
1Although petitioner has not presented evidence of any
expenses incurred in his business, he received a favorable
allowance for expenses from respondent. Despite receipts of over
$100,000 in each of the years in issue, respondent determined
that petitioner had only $43,603 of self-employment income in
each year. Respondent states in his trial memorandum that, due
to an inability to establish amounts of expenses, respondent used
the average of petitioner’s self-employment income for taxable
years 1990 through 1995 as the amount of petitioner’s self-
employment income in each of 1996 and 1997.
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