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“whose inexactitude is of his own making.” See Cohan v.
Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930). In making
such an approximation, we start with the consideration of the 86
percent figure derived from SOI. But, we recognize that there
are expenses contained in that figure (such as employee benefit
programs, commissions, profit-sharing plans, etc.) that
petitioner did not incur. Accordingly, we believe that
petitioner’s expenses would have been approximately 80 percent of
his revenues or $86,134.
With respect to the addition to tax under section
6651(a)(1), the parties have stipulated that the return was filed
March 7, 2000, almost 11 months after the return should have been
filed, and petitioner has offered no evidence that the late
filing was due to reasonable cause and not willful neglect. We
sustain respondent’s determination of the section 6651(a)(1)
addition to tax for 1998. See United States v. Boyle, 469 U.S.
241 (1985).
Reviewed and adopted as the report of the Small Tax Case
Division.
An appropriate order will be
issued, and decision will be
entered under Rule 155.
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