Estate of Michael J. Thomas - Page 8




                                        - 8 -                                         

          tax return, the reported value of the estate's interest in the              
          Thomas Trust was $202,167.60, consisting of real property and 75            
          shares of Thomas, Inc. stock less certain liabilities.                      
               Neither party challenges the amount of the estate tax.  As             
          noted earlier, the sole issue is the estate's contention that the           
          additions to tax under section 6651(a)(1) and (2) are not                   
          applicable, not only as to the section 6651(a)(1) addition to tax           
          determined in the notice of deficiency, but also as to the                  
          section 6651(a)(1) and (2) amounts that were previously paid by             
          the estate as to which a claim for refund was denied by                     
          respondent.                                                                 
               The addition to tax imposed under each paragraph of section            
          6651(a) applies "unless it is shown that such failure is due to             
          reasonable cause and not due to willful neglect."  The burden is            
          on the taxpayer to prove that the failure is due to reasonable              
          cause and not willful neglect.  United States v. Boyle, 469 U.S.            
          241, 245 (1985); Davis v. Commissioner, 81 T.C. 806, 820 (1983),            
          affd. without published opinion 767 F.2d 931 (9th Cir. 1985);               
          Estate of Newton v. Commissioner, T.C. Memo. 1990-208.  This is a           
          "heavy burden".  United States v. Boyle, supra at 245.                      
               In order to establish reasonable cause, a taxpayer must show           
          the exercise of ordinary business care and prudence and the                 
          inability to file the return or pay the tax within the prescribed           
          time.  Sec. 301.6651-1(c)(1), Proced. & Admin. Regs.  In order to           





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011