- 7 - (5th Cir. 1995). Accordingly, we sustain respondent's disallowance of the deductions for the legal expenses and the "claim of right" expenses. The itemized deductions substantiated by petitioner or allowed by the Court are less than the standard deduction for an unmarried individual. Sec. 63(c)(2)(C). Consequently, petitioner is entitled to the standard deduction for his 1994 tax year. Respondent contends that petitioner is liable for an addition to tax pursuant to section 6651(a)(1). Section 6651(a)(1) imposes an addition to tax for failure to file a Federal income tax return by its due date, determined with regard to any extension of time for filing previously granted. The addition equals 5 percent for each month that the return is late, not to exceed 25 percent. Sec. 6651(a)(1). Additions to tax under sections 6651(a)(1) are imposed unless the taxpayer establishes that the failure was due to reasonable cause and not willful neglect. Sec. 6651(a)(1). The taxpayer must prove both reasonable cause and a lack of willful neglect. Crocker v. Commissioner, 92 T.C. 899, 912 (1989). "Reasonable cause" requires the taxpayer to demonstrate that he exercised ordinary business care and prudence. United States v. Boyle, 469 U.S. 241, 246 (1985). Willful neglect is defined as a "conscious,Page: Previous 1 2 3 4 5 6 7 8 9 Next
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