James A. Shinault - Page 8

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          petitioner has not proved that he is entitled to the earned                 
          income credit.                                                              
               Under section 24(a), a taxpayer is entitled to a child tax             
          credit for each qualifying child.  A qualifying child is any                
          child of the taxpayer for whom the taxpayer is allowed a                    
          deduction under section 151 and who is under the age of 17.                 
          Sec. 24(c).  We have found that petitioner’s son was 12 years               
          old during taxable year 2000 and that petitioner is allowed a               
          deduction under section 151.  Accordingly, we hold that                     
          petitioner has shown that he is entitled to a child tax credit              
          for his minor son for taxable year 2000.                                    
               Section 6651(a)(1) imposes an addition to tax for a failure            
          to file an income tax return.  A taxpayer may be relieved of the            
          penalties, however, if he can demonstrate that the failure is due           
          to reasonable cause and not due to willful neglect.  Higbee v.              
          Commissioner, supra at 446-447.  Willful neglect means                      
          intentional failure or reckless indifference.  United States v.             
          Boyle, 469 U.S. 241, 245 (1985).  Section 301.6651-1(c)(1),                 
          Proced. & Admin. Regs., states that if a taxpayer exercises                 
          ordinary business care and prudence and is nevertheless unable to           
          file on time, then the delay is due to reasonable cause.                    
          Petitioner did not timely file his 2000 tax return because at the           
          time it was due he believed that the amounts paid to him by                 
          Lauren’s Cycle Sales, Inc. were a nontaxable exchange of equal              






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