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efforts to fill out and file his tax return. Petitioner sought
help from the IRS both in person and telephonically and produced
at trial tax forms he attempted to fill out based on the
telephonic advice and the forms’ instructions. However, initial
reasonable cause may not exist indefinitely. At some point
petitioner ceased acting as a reasonable and prudent business
person because he terminated his active efforts to comply with
the law and never filed his 2000 tax return. Notably, the record
does not reflect that petitioner applied to respondent for an
extension of time to file his 2000 tax return.
Petitioner also contends that he did not file his 2000
return because he mistakenly believed he did not generate
sufficient income. Petitioner’s belief, without any confirmation
from a knowledgeable tax adviser, that no tax is due or that
petitioner is entitled to a refund does not constitute reasonable
cause. Ferguson v. Commissioner, T.C. Memo. 1994-114.
Although the Court is sympathetic to petitioner and the
circumstances of his case, the Court concludes that petitioner
has not demonstrated reasonable cause for failing to file his
2000 tax return. Therefore, the Court sustains the imposition of
an addition to tax pursuant to section 6651(a)(1).
The Court has considered all of petitioner’s contentions,
arguments, requests, and statements. To the extent not discussed
herein, we conclude that they are meritless, moot, or irrelevant.
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Last modified: May 25, 2011