James Joseph, Jr. - Page 12




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               Illness or incapacity may constitute reasonable cause if the           
          taxpayer establishes that he was so ill that he was unable to               
          file.  Williams v. Commissioner, 16 T.C. 893, 906 (1951).  On               
          brief, petitioner contends that he filed his returns late because           
          he was ill.  We disagree.  Petitioner was well enough to prepare            
          and file hundreds of tax returns for each of the years in issue.            
          We conclude that petitioner is liable for the addition to tax for           
          failure to timely file his 1992 and 1993 returns.                           
               2.   Accuracy-Related Penalty                                          
               Petitioner testified that he did not keep track of his                 
          income during the years in issue.  He did not provide respondent            
          with any records of his income or expenses for those years.  A              
          taxpayer’s failure to properly substantiate items is evidence of            
          negligence.  See sec. 6662(c); Higbee v. Commissioner, 116 T.C.             
          438, 449 (2001).                                                            
               Petitioner made no argument about the accuracy-related                 
          penalty at trial or on brief.  A taxpayer may be deemed to                  
          concede an issue that was raised in the petition if he or she               
          makes no argument at trial or on brief relating to that issue.              
          Levin v. Commissioner, 87 T.C. 698, 722-723 (1986), affd. 832               
          F.2d 403 (7th Cir. 1987); Zimmerman v. Commissioner, 67 T.C. 94,            












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