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was not filed until September 1998. Respondent determined the
addition to tax for late filing for the Gownis because, although
the Gownis were granted an extension to file until October 15,
2000, the Gownis’ 1999 return was not filed until November 2000.
To escape the addition to tax for filing late returns,
petitioners have the burden of proving that the failure to file
did not result from willful neglect and that the failure was due
to reasonable cause. See United States v. Boyle, 469 U.S. 241,
245 (1985). Because petitioners failed to present any
explanation as to their late filing, they remain liable under
section 6651.
Respondent determined accuracy-related penalties with
respect to petitioners under section 6662(a) for one or more of
the following reasons: (1) Negligence or disregard of rules or
regulations or (2) any substantial understatement of income tax.
Petitioners argue that the accuracy-related penalties should not
be imposed because of their reliance on Bradshaw.
Under section 6662(a), a taxpayer may be liable for a
penalty of 20 percent on the portion of an underpayment of tax
due to, inter alia, negligence or disregard of the rules or
regulations or any substantial understatement of income tax.
Sec. 6662(b)(1) and (2). The term “negligence” includes any
failure to make a reasonable attempt to comply with the
provisions of the internal revenue laws or to exercise ordinary
and reasonable care in the preparation of a tax return. Sec.
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