- 51 -
Schedule K-1 is irrelevant to the issue of whether they were
required to file their returns on time. Furthermore, even if the
advice had provided a reasonable cause for not filing on time,
the memorandum containing the written advice was dated October 9,
1998, almost two months after petitioners were required to file
their 1997 return. Thus, it is unlikely that petitioners
actually relied upon any legal advice when making the decision
not to file their 1997 tax return on time. See Estate of Hinz v.
Commissioner, T.C. Memo. 2000-6.
Accordingly, we find that petitioners did not have
reasonable cause for failure to file their 1997 and 1999 income
tax returns on time and therefore sustain respondent’s
determination that petitioners are liable for the additions to
tax under section 6651(a)(1).
To reflect the foregoing and concessions of the parties,
Decision will be entered
under Rule 155.
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