Charles R. Godwin et al. - Page 21

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          liability and made arrangements to pay their approximate 1997 tax           
          liability when it fell due.                                                 
               Petitioners argue that petitioner’s law practice net profits           
          in later years were not high enough to pay their unusually high             
          tax liability for 1997.  This argument is a nonstarter.                     
          Petitioners should have set aside in liquid form sufficient                 
          proceeds of their high income for 1997 to enable them to use                
          those proceeds to pay the tax for that year.                                
               In failing to provide for payment of their tax liability,              
          petitioners did not exercise ordinary care and prudence; they did           
          not show they would have suffered an undue hardship if they paid            
          on the due date because they prevented themselves from doing so.            
          Petitioners did not have reasonable cause for failing to pay                
          their 1997 income tax timely.  Petitioners are liable for the               
          addition to tax under section 6651(a)(2) in the section 6330                
          cases for the period April 15 to October 15, 1998, and November             
          17, 1998, to the date or dates of payment up to the maximum                 
          statutory amount.                                                           
          5.  Late Filing of 1997 Return                                              
               a.  Section 6651(a)(1) Addition to Tax in the                          
               Section 6330 Cases                                                     
               For failure to file a Federal income tax return by its due             
          date, including valid extensions, there shall be added to the               
          amount required to be shown as tax on such return 5 percent of              
          the amount of such tax if the failure is for not more than 1                

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