- 7 -
filing the estate tax return was due to reasonable cause and not
due to willful neglect.1
The term “willful neglect” denotes “a conscious, intentional
failure or reckless indifference.” United States v. Boyle, 469
U.S. 241, 245 (1985). Reasonable cause is established where,
despite the exercise of ordinary business care and prudence, a
taxpayer is unable to file timely. Id. at 246 & n.4; sec.
301.6651-1(c)(1), Proced. & Admin. Regs.; see also McMahan v.
Commissioner, 114 F.3d 366, 369 (2d Cir. 1997) (considering
elements constituting reasonable cause for late filings under
section 6651(a)(1)), affg. T.C. Memo. 1995-547.
Respondent does not contend that the return was delinquent
because of Messrs. Roisen and Helman’s willful neglect, only that
they have failed to establish reasonable cause for the
delinquency. Respondent relies on the following points to
support his reasonable cause conclusion: Reliance on the advice
of an attorney concerning matters of law constitutes reasonable
cause. However, a taxpayer’s reliance on the advice of an
attorney with respect to matters such as meeting filing deadlines
generally does not constitute reasonable cause. Here, Mr. Ledley
1 The delinquency having been established, respondent has
met the burden of production placed on him by sec. 7491(c), see,
e.g., Weaver v. Commissioner, T.C. Memo. 2004-108, and petitioner
bears the burden of proving reasonable cause and the lack of
willful neglect, see Rule 142(a); Higbee v. Commissioner, 116
T.C. 438, 446-447 (2001).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: November 10, 2007