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to what petitioner told the preparer, what the preparer told
petitioner, and whether or not petitioner’s reliance on any
advice from the preparer was reasonable. See sec. 1.6664-4(c),
Income Tax Regs. Penalties are sustained for 1996 through 1999
for substantial understatement of tax.
Petitioner has made no argument that penalties should not be
sustained to the extent of the disallowed deductions. Petitioner
has not cited any substantial authority as to why penalties
should not be sustained. Petitioner has not cited any
substantial authority to support his argument that he was in a
trade or business and allowed to deduct his expenses under
section 162. It was unreasonable and thus negligent for
petitioner simultaneously to exclude income and claim deductions
for the expenses incurred in the collection of that income.
Penalties are sustained to the extent of the disallowed
deductions for 1995 through 1999.
Section 6651(a) Addition to Tax
Respondent determined the addition to tax for late filing
because petitioner did not file his 1999 return until October 16,
2000. There is no evidence that petitioner applied for an
extension of time to file his return.
To avoid the addition to tax for filing a late return,
petitioner has the burden of proving that the failure to file
timely did not result from willful neglect and was due to
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