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October 15, 2001. However, petitioners did not make any attempt
to file a return reporting their income and expenses as
accurately as they could using the best information available.
See Belk v. Commissioner, 93 T.C. 434, 447 (1989). On the basis
of the instant record, we conclude that petitioners have not
shown that the delay was due to reasonable cause. Consequently,
petitioners are liable for a section 6651 addition to tax for
failure to file a timely return.
Petitioners further contend that the Bankruptcy Code
precludes the assessment of a section 6651 addition to tax for
failure to file.17 However, in exercising jurisdiction to
redetermine a deficiency, this Court lacks jurisdiction to decide
whether the deficiency and the related addition to tax were
discharged in a prior bankruptcy proceeding. Neilson v.
Commissioner, 94 T.C. 1, 9 (1990); Graham v. Commissioner, 75
T.C. 389, 396 (1980); cf. Washington v. Commissioner, 120 T.C.
114, 120 (2003) (Tax Court’s jurisdiction to decide whether
discharge occurred extends to section 6330 proceedings but not to
17Petitioners’ reply brief set forth the aforementioned
contention as follows:
Further, petitioners, the injured taxpayers,
assert that any late penalties for a faultless 2000 tax
year late filing are statutorily and explicitly barred
by applicable federal bankruptcy statutes. The IRS
baroque twist sidesteps bankruptcy laws. No further
discussion of the penalty issue seems appropriate or
necessary.
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