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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Last modified: November 10, 2007