- 29 - failure to file continues, to a maximum of 25 percent of the tax. Id. The additions are applicable unless petitioners establish that their failure to timely file the returns was due to reasonable cause and not willful neglect. Id. If petitioners exercised ordinary business care and prudence and were nonetheless unable to file their returns within the date prescribed by law, then reasonable cause exists. Sec. 301.6651- 1(c)(1), Proced. & Admin. Regs. “Willful neglect” means a “conscious, intentional failure or reckless indifference.” United States v. Boyle, 469 U.S. 241, 245 (1985). Petitioners timely filed and were granted automatic extensions to file their respective 1994 and 1995 Federal income tax returns on August 15, 1995, and August 15, 1996, respectively. Petitioners’ returns were filed with the Kansas City, Missouri, field office on August 21, 1995, and August 23, 1996, respectively. The postmark on the envelope attached to their 1995 return shows a date of August 15, 1995. We find that petitioners timely filed their 1994 Federal income tax return. Sec. 7502. Accordingly, petitioners are not liable for the addition to tax under section 6651(a) for 1994. Petitioners’ 1996 envelope in which their 1995 return was mailed was not available in the record. Mr. Reimer testifiedPage: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
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