Carol A. Black and William R. Adams - Page 6

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          accountant testified that he advised Adams that one of the                  
          options to assure that his returns were properly prepared and               
          timely filed was to pay a bookkeeper to put the information in a            
          form that would allow the accountant to prepare the return.                 
          Adams testified that he did not want to incur the additional                
          expense to hire and employ a bookkeeper.  The accountant and                
          Adams made a deliberate choice to file the returns late and then            
          to seek to abate the penalties that they knew would result from             
          late filing.                                                                
               Petitioners argue that illness of a taxpayer may constitute            
          reasonable cause for late-filed returns and late payment of tax.            
          We are unpersuaded that illness is the cause of petitioners’                
          continuing delinquency.  Petitioners cite no case where the                 
          taxpayers’ delinquency continued over a period of years while the           
          taxpayers failed to take steps necessary, and readily taken, to             
          cause their tax returns to be filed on time.  Petitioners are               
          educated, intelligent, and able to sustain a business that                  
          produced substantial income.  Their failure to comply with their            
          annual duty to file tax returns is unexcused.  There is no basis            
          for concluding that they are not liable for the statutory                   
          additions to tax that follow those delinquencies.                           
                                                  Decision will be entered            
                                             for respondent.                          

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