- 13 - incorrect; e.g., that the failure was due to reasonable cause and not willful neglect. United States v. Boyle, 469 U.S. 241, 245 (1985); Higbee v. Commissioner, 116 T.C. 438, 446 (2001); H. Conf. Rept. 105-599, at 241 (1998), 1998-3 C.B. 747, 995. Reasonable cause may exist if the taxpayer exercised ordinary business care and prudence but nevertheless could not file the return when due. United States v. Boyle, supra at 246; Bank of the West v. Commissioner, 93 T.C. 462, 471 (1989). Petitioner contends that his illness was reasonable cause for failure to timely file his 2001 return. We disagree. A taxpayer’s disability may constitute reasonable cause for failure to file returns. United States v. Boyle, supra at 248 n.6. However, a taxpayer does not have reasonable cause for failing to file tax returns if he or she was performing normal business operations. See Paradiso v. Commissioner, T.C. Memo. 2005-187; 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. Petitioner operated JRC and RSC in 2002 and through the date of trial. He continued to work on a reduced schedule after his illness was diagnosed. He operated successful tax and accounting practices in New York and Florida from 2002 through 2004. He also (1) represented clients before the IRS; (2) traveled between his offices in Florida and New York; (3) signed all of JRC’sPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011