David and Monika Zisskind - Page 11

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               Petitioners provided the Court with no information                     
          indicating when their investment became worthless.  In fact,                
          petitioners did not claim a capital loss on their 2000 Federal              
          income tax return, indicating that their investment did not                 
          become worthless in 2000.  Without this information, we cannot              
          determine whether petitioners had the ability to pay their tax              
          liability when it was due.                                                  
               There is no evidence in the record regarding whether                   
          petitioners exercised ordinary business care and prudence in                
          monitoring their investment.  Additionally, given that petitioner           
          was a self-employed real estate developer and contractor, we do             
          not find credible his testimony that he thought investing with              
          Merrill Lynch was the same thing as depositing the money with a             
               Petitioners have not established that they made a                      
          “reasonable efforts to conserve sufficient assets in marketable             
          form”.  See sec. 301.6651-1(c)(1), Proced. & Admin. Regs.                   
          Petitioners have failed to show that their failure to timely pay            
          the amount of tax shown on their return was due to reasonable               
          cause and not due to willful neglect.  Therefore, we hold that              
          petitioners are liable for an addition to tax under section                 
          6651(a)(2) as respondent determined.                                        

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