Steven Rudolph Kaldi - Page 14

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               While we recognize petitioner’s mental health difficulties             
          had some impact on his day-to-day life, petitioner employed the             
          same accountant for more than 20 years.  In fact, he testified              
          that his practice was to put all his papers into an envelope and            
          deliver the envelope to his accountant who then prepared his                
          returns.  Petitioner did not explain how his disability prevented           
          him from doing this for the taxable year in issue or how his                
          disability was so incapacitating as to prevent the exercise of              
          ordinary business care.                                                     
               On the basis of the record before us, we therefore conclude            
          that petitioner did not demonstrate that his failure to timely              
          file a return was because of reasonable cause and not willful               
          neglect.  See sec. 301.6651-1(c), Proced. & Admin. Regs.                    
          Accordingly, petitioner is liable for the addition to tax under             
          section 6651(a)(1) for 2002.                                                
               2.  Late Payment                                                       
               Section 6651(a)(2) imposes an addition to tax for failure to           
          pay the amount shown as tax on the return on or before the date             
          prescribed for payment of that tax, unless the failure was                  
          because of reasonable cause and not willful neglect.  Sec.                  
          301.6651-1(c)(1), Proced. & Admin. Regs.  Petitioner may                    
          demonstrate reasonable cause for late payment by showing that he            
          exercised ordinary business care and prudence in providing for              
          payment of his tax liability and was nevertheless either unable             

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