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Section 6651(a) authorizes the Commissioner to impose an
addition to tax whenever a taxpayer fails to file a required
return when due (determined with regard to any extension of the
filing deadline) unless the taxpayer shows that such failure was
due to reasonable cause and was not due to willful neglect.
In this case, the parties agree that Vortex did not file its
income tax return for its FYE 1993 by the extended filing
deadline. Consequently, in order to avoid liability for the
section 6651(a) addition to tax, Vortex must show that its
failure to timely file was due to reasonable cause and not due to
willful neglect. AJF Transp. Consultants, Inc., v. Commissioner,
T.C. Memo. 1999-16, affd. 85 AFTR 2d 1909, 2000-1 USTC par. 50473
(2d Cir. 2000). The term “reasonable cause” is defined as the
exercise of ordinary business care and prudence. Sec. 301.6651-
1(c)(1), Proced. & Admin. Regs. The term “willful neglect” is
defined as a “conscious, intentional failure or reckless
indifference.” United States v. Boyle, 469 U.S. 241, 246 (1985).
At trial, Mrs. Zhadanov recited the difficulties she faced in
dealing with the Zhadanovs’ and Vortex’s legal and tax issues
while her husband was in jail. She testified that she hired tax
lawyers who did nothing but “calculate numbers, numbers,
numbers,” then withdrew their representation. She testified
about the money problems she and her husband encountered as a
result of the forfeiture and the efforts that she and other
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