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6662(c). The majority of petitioners’ itemized deductions for
1999 and 2000 have been disallowed by the Court. Petitioners
presented very little evidence as to how they arrived at many of
the amounts listed on their returns. In addition, the majority
of their receipts admitted into evidence appear to be either
irrelevant or fabricated. The Court holds that petitioners
disregarded rules and regulations in preparing their returns for
1999 and 2000 and sustains the section 6662(a) penalties.
Respondent also determined a section 6651(a)(1) addition to
tax for the year 2000. A taxpayer is liable for an addition to
tax for failure to file a timely return unless such failure “is
due to reasonable cause and not willful neglect.” Sec.
6651(a)(1). Willful neglect is defined as “a conscious,
intentional failure, or reckless indifference.” United States v.
Boyle, 469 U.S. 241, 245 (1985). Petitioners were required to
file a timely Federal income tax return for 2000. Sec. 6012.
Petitioners filed their 2000 Federal income tax return late,
on June 7, 2001. When asked at trial why he did not file timely,
Mr. Booker claimed he had filed for an extension; however, he had
no evidence substantiating his claim. Due to the lack of any
written evidence of an extension, the Court holds petitioners are
liable for the section 6651(a) addition to tax for 2000.
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