-33-
never received the Form 1099-R issued by Norwest for 1999
reporting the distributions from Mr. Kopty’s IRA during the year
totaling $331,500; and third, the fact that petitioners reported
a loss on their 1999 return and did not believe that the filing
of their 1999 return was an urgent matter, especially in light of
Mr. Kopty’s medical problems during that year.
Petitioners assert the late filing of their 1999 return was
not due to willful neglect. According to petitioners, they were
“proactive with the ESOP issue” in that they corresponded with
J.D. Edwards & Co. through Mr. Kopty’s letter dated February 9,
2000, and they communicated with the Internal Revenue Service
through Mr. Kopty’s letters dated April 15, 2000, May 27, 2000,
and October 4, 2000, and Mr. Kopty’s telephone call on September
26, 2000.
We do not believe that petitioners have shown that their
failure to file a timely 1999 return was due to reasonable cause
and not due to willful neglect. As stated above, we agree that
Mr. Kopty’s heart attack in March of 2000 and his related
surgeries and medical care through June of 2000 were serious.
Nevertheless, the record of Mr. Kopty’s correspondence and other
activities during the year fails to explain why petitioners did
not file, or could not have filed, their return for 1999 on or
before the due date, December 15, 2000. Indeed, notwithstanding
Mr. Kopty’s medical condition, petitioners filed their 1998
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