Joel Rappaport - Page 14

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          timely filed employment tax returns for 2002-04; (4) signed and             
          filed annual reports with the State of Florida for his Florida              
          corporation; and (5) received wages from JRC of $160,000 per year           
          for his work in 2002, 2003, and 2004.                                       
               Petitioner testified that he had not prepared his or any               
          taxpayers’ returns in more than 30 years and that he had others             
          at JRC and RSC prepare them.  Petitioner does not explain why               
          someone at JRC or RSC did not prepare his 2001 return.  Hester              
          prepared petitioner’s 2000 return and apparently was available to           
          prepare and timely file petitioner’s 2001 return.                           
               Petitioner contends that United States v. Isaac, 68 AFTR 2d            
          91-5094, 91-2 USTC par. 50,314 (E.D. Ky. 1991), affd. without               
          published opinion 968 F.2d 1216 (6th Cir. 1992), “is virtually on           
          ‘all fours’ with Petitioner’s situation” and thus controls here.            
          We disagree.  In Issac, the District Court found that the                   
          taxpayer could not function during the 3 years for which the                
          Commissioner contended he should have filed his income tax                  
          returns.  Petitioner continued to function during the time at               
          issue here.  We conclude that petitioner lacked reasonable cause            
          for his failure to file a return for 2001.                                  

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