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Some of the facts were stipulated. Those facts, with the
exhibits annexed thereto, are so found and are made part hereof.
Petitioners' legal residence at the time the petition was filed
was Albuquerque, New Mexico.
With respect to the first issue, the additions to tax under
section 6651(a)(1) for 1998 and 1999, petitioners agreed that
their returns for these 2 years were not filed timely, and they
had not applied for or had been granted extensions for the filing
of their returns. Although petitioners knew that their returns
had not been filed timely, they were not concerned because their
returns reflected overpayment of taxes. Section 6072(a) provides
that income tax returns must be filed on or before the 15th day
of April following the close of the taxable year, subject to
exceptions not applicable here, unless the failure to file timely
is due to reasonable cause and not due to willful neglect.
Petitioners' belief at the time their returns were filed that
they had overpaid their taxes does not constitute reasonable
cause for the late filing. E.g., Hintze v. Commissioner, T.C.
Memo. 2001-70. Respondent, accordingly, is sustained on this
issue.
With respect to the accuracy-related penalties under section
6662(a), petitioners contend they should be absolved of liability
for the penalties because they relied on their income tax return
preparer. Petitioners' returns were prepared by Robin Beltran.
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