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See secs. 6651(a)(1), 6001; Ellwest Stereo Theatres of Memphis,
Inc. v. Commissioner, T.C. Memo. 1995-610; sec. 1.1461-2, Income
Tax Regs. Consequently, petitioner is obligated to prove that
the failure to file Forms 1042 was due to reasonable cause and
not due to willful neglect. See Higbee v. Commissioner, 116 T.C.
438, 447 (2001).
A failure to file is due to reasonable cause where a
taxpayer “exercised ordinary business care and prudence and was
nevertheless unable to file the return within the prescribed
time”. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Although
courts have sometimes found reasonable cause in determining the
amount of a taxpayer’s liability for the addition to tax where a
taxpayer relies upon expert advice, a taxpayer ordinarily is
responsible for ascertaining tax obligations such as filing
deadlines. United States v. Boyle, supra at 251. Lay persons
know that filing deadlines exist, and “reliance cannot function
as a substitute for compliance with an unambiguous statute.” Id.
However, where a taxpayer reasonably relied on the advice of a
competent accountant or attorney in possession of all relevant
facts that it was unnecessary to file a return, reasonable cause
may exist, even if the advice turns out to be mistaken. Id. at
250.
Petitioner does not contend that it was unaware that a
withholding liability might exist as a result of making interest
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