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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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