Charles R. Godwin et al. - Page 24

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          the loss is treated as having occurred in the taxable year for              
          which the deduction is claimed.  Sec. 165(i)(2).                            
               Petitioners had until the due date of their 1998 return,               
          April 15, 1999, to elect to take into account 1998 casualty                 
          losses from Hurricane Georges on their 1997 return.  Sec. 165(i);           
          sec. 1.165-11(e), Income Tax Regs.  Section 165(i) allows                   
          petitioners either to amend their 1997 return or claim a refund             
          of taxes from their 1997 tax year.  Neither section 165(i) nor              
          any other Code provision allows petitioners to file their 1997              
          return later than April 15, 1998, the due date.                             
               Finally, petitioners argue that section 7508A, which                   
          authorizes the IRS to postpone any deadline under Federal tax               
          laws for taxpayers affected by a Presidentially declared                    
          disaster, creates a presumption of reasonable cause under section           
          6651(a)(1) and (2).  Section 7508A provides no general                      
          presumption of reasonable cause for late filing or late payment.            
               Petitioners did not have reasonable cause for failing to               
          file their 1997 return by November 16, 1998.  Petitioners are               
          liable for the addition to tax under section 6651(a)(1) in the              
          section 6330 cases for the period November 17 through December              
          21, 1998, up to the maximum statutory amount.  Respondent’s                 
          assessment shall be reduced by the amount of the section                    
          6651(a)(2) addition for any month (or fraction thereof) to which            
          an addition to tax under section 6651(a)(1) and (2) applies.                

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