- 23 -
to file. See Watts v. Commissioner, T.C. Memo. 1999-416;
Kemmerer v. Commissioner, T.C. Memo. 1993-394; Bear v.
Commissioner, T.C. Memo. 1992-690, affd. without published
opinion 19 F.3d 26 (9th Cir. 1994). The natural disasters did
not preclude petitioner from having time to work in his law
practice 12 hours per day, 6 days per week throughout 1997 and
1998, to engage in real estate transactions in 1998, and to
travel to visit the timberland several times in 1998. Moreover,
petitioners did not establish any causal link between the natural
disasters and the late filing, such as damage or loss of their
business records that precluded them from filing on time.
Respondent conceded petitioners an extension of time to file
until November 16, 1998. Petitioners had more than enough time
to complete and file their 1997 return no later than November 16,
1998.
Second, replacement of petitioners’ accountant is not
“reasonable cause” to excuse their late filing. See United
States v. Boyle, supra at 252.
Third, petitioners argue their 1997 return was filed timely
under section 165(i), which provides that any loss attributable
to a Presidentially declared natural disaster may, at the
election of the taxpayer, be taken into account for the taxable
year immediately preceding the taxable year in which the disaster
occurred. If such an election is made, the casualty resulting in
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011