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reasonable cause for that failure. Petitioners do not deny that
the returns were not timely filed.
Section 6651(a)(1) imposes an addition to tax for failure to
file a return unless it is shown that such failure is due to
reasonable cause and not due to willful neglect. See sec.
6651(a)(1); United States v. Boyle, 469 U.S. 241, 245 (1985). A
failure to file a timely Federal income tax return is due to
reasonable cause if the taxpayer exercised ordinary business care
and prudence and, nevertheless, was unable to file the return
within the prescribed time. See Crocker v. Commissioner, 92 T.C.
899, 913 (1989); sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
Willful neglect means a conscious, intentional failure to file or
reckless indifference. See United States v. Boyle, supra at 245.
Petitioners did not address this issue at trial or in their
briefs. Accordingly, we treat this issue as conceded by
petitioners, and we sustain respondent’s determination on the
additions to tax for failure to timely file a return. See Rule
151(e)(4) and (5); Petzoldt v. Commissioner, supra at 683; Money
v. Commissioner, supra at 48.
Accuracy-Related Penalties for Negligence
Respondent determined that for 1991 and 1992 petitioners
were liable for accuracy-related penalties for negligence.
Petitioners assert that their actions were not negligent.
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