Richard T. and Catherine L.. Lites - Page 11

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          6651(a)(1) addition to tax for late filing should be abated for             
          petitioner’s 1999 tax year.  We review de novo whether                      
          petitioners are liable for the remaining additions to tax under             
          section 6651.  See Downing v. Commissioner, supra at 29.                    
               Section 6651(a)(1) Addition to Tax for Late Filing for 2000            
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a return by the prescribed date (taking into account any               
          extension of time for filing), unless it is shown that the                  
          failure is due to reasonable cause and not due to willful                   
          neglect.  A showing of reasonable cause requires petitioners to             
          demonstrate they exercised “ordinary business care and prudence”            
          but were nevertheless unable to file the return within the                  
          prescribed time.  Sec. 301.6651-1(c)(1), Proced. & Admin. Regs.             
          For illness to constitute reasonable cause for failure to file,             
          petitioners must show that the surgery so incapacitated Richard             
          that they could not file their 2000 return on time.                         
               Petitioners contend that Richard’s cardiac surgery in                  
          January 1999 and consequent employment hiatus constitute                    
          reasonable cause for petitioners’ failure to timely file their              
          2000 return.  Petitioners do not assert, and the record does not            
          indicate, that Richard’s illness would have prevented Catherine             
          from tending to petitioners’ filing obligations.  Moreover,                 
          petitioners’ 2000 tax return was due (after extensions) on                  
          October 15, 2001--about 2 years and 9 months after Richard’s                






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