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regarding reasonable cause or substantial authority. Higbee v.
Commissioner, supra at 446-447.
B. Section 6651(a)(1)
Respondent asserts that petitioner is liable for the
addition to tax pursuant to section 6651(a)(1) for 2000 and 2001.
Section 6651(a)(1) imposes an addition to tax for failure to file
a return on the date prescribed (determined with regard to any
extension of time for filing), unless such failure is due to
reasonable cause and not due to willful neglect. Section
6651(a)(1) imposes a charge, for each month or fraction thereof
that a return is late, equal to 5 percent of the amount of tax
that should have been shown on the return, subject to a maximum
charge of 25 percent. The taxpayer must show that he/she
exercised business care and prudence but nevertheless was unable
to file the return within the specified time. See United States
v. Boyle, 469 U.S. 241, 245 (1985); sec. 301.6651-1(c)(1),
Proced. & Admin. Regs. Willful neglect means a conscious,
intentional failure, or reckless indifference. United States v.
Boyle, supra at 245. Generally, factors that constitute
“reasonable cause” include unavoidable postal delays, death or
serious illness of the taxpayer or a member of his immediate
family, or reliance on the mistaken legal opinion of a competent
tax adviser, lawyer, or accountant that it was not necessary to
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