Richard J. Meyer III - Page 10




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          Sec. 1.72-17A(f)(2), Income Tax Regs.                                       
               On the basis of the particular facts and circumstances                 
          present in this case, namely petitioner’s severe health problems            
          and mental condition which incapacitated him during the years in            
          issue, we conclude that an exception provided in section 72(t)(2)           
          is applicable to Mr. Meyer for the years in issue.  Accordingly,            
          we conclude that Mr. Meyer is not liable for the additional tax             
          imposed by section 72(t)(1).                                                
          Additions to Tax                                                            
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a return on the date prescribed (determined with regard to             
          any extension of time for filing), unless the taxpayer can                  
          establish that such failure is due to reasonable cause and not              
          due to willful neglect.  Section 6651(a)(2) provides for an                 
          addition to tax where payment of tax is not timely “unless it is            
          shown that such failure is due to reasonable cause and not due to           
          willful neglect”.                                                           
               On the basis of the particular facts and circumstances                 
          present in this case, namely petitioner’s severe health problems            
          and mental condition which incapacitated him during the years in            
          issue, we conclude that Mr. Meyer’s failure to file for the years           
          in issue and failure to pay for 1996 were due to reasonable cause           
          and not willful neglect.  See Shaffer v. Commissioner, T.C. Memo.           
          1994-618.  Accordingly, we conclude that Mr. Meyer is not liable            






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