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1. Addition to Tax for Late Filing
Section 6651(a)(1) provides an addition to tax of 5 percent
per month (up to a maximum of 25 percent) for a failure to file a
timely tax return, unless it is shown that the untimely filing is
due to reasonable cause and not due to willful neglect.
Respondent has met his burden of production under section 7491(c)
as to the applicability of section 6651(a)(1), and petitioner
bears a “heavy” burden of now proving that the coadministrators
had reasonable cause for filing the estate tax return late.
United States v. Boyle, 469 U.S. 241, 245 (1985); see Higbee v.
Commissioner, 116 T.C. 438, 446-447 (2001). Reasonable cause may
be found if the coadministrators exercised ordinary business care
and prudence and were nevertheless unable to file the estate tax
return on time. See United States v. Boyle, supra at 246; sec.
301.6651-1(c)(1), Proced. & Admin. Regs.
Petitioner has failed to persuade us that the late filing of
the estate tax return was due to reasonable cause or, in other
words, to the exercise of ordinary business care and prudence on
the part of the coadministrators. As to Gershon, he fractured
his hip approximately 2 months before the extended due date of
the estate tax return, and the record does not establish why
Gershon waited until those last 2 months to file the return.
Even so, we see no reason why Gershon could not have filed that
return timely. Gershon continued working after fracturing his
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