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A taxpayer's disability or mental incapacity may constitute
reasonable cause for failure to file returns. United States v.
Boyle, supra at 248 n.6; Brown v. United States, 630 F. Supp. 57
(M.D. Tenn. 1985). While general incompetence, mental illness,
alcoholism, or other incapacity may excuse a taxpayer from
filing, a taxpayer's selective inability to perform his tax
obligations in view of his ability to perform normal business
operations does not excuse his failure to file. See Kemmerer v.
Commissioner, T.C. Memo. 1993-394; Bear v. Commissioner, T.C.
Memo. 1992-690, affd. 19 F.3d 26 (9th Cir. 1994); Bloch v.
Commissioner, T.C. Memo. 1992-1; Fambrough v. Commissioner, T.C.
Memo. 1990-104.
Petitioner operated a personal computer business from 2000
through the date of trial. In 2000, that business had gross
receipts of $1,704 and a net loss of $5,728. Petitioner used
TurboTax software to prepare a draft return for 2000. These
facts undermine petitioner’s claim that he lacked capacity to
file a return. We conclude that petitioner lacked reasonable
cause for his failure to file a return for 2000.
b. Reliance on Tax Professionals
Reasonable cause for failure to file may exist when a
taxpayer shows that he or she reasonably relied on the advice of
an accountant or attorney that it was unnecessary to file a
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