Document: 469 U.S. 241 105 S.Ct. 687 83 L.Ed.2d 622 UNITED STATESv.BOYLE, Executor of the Estate Boyle. No. 83-1266. Argued Oct. 10, 1984. Decided Jan. 9, 1985. Syllabus Respondent, executor his mother's will, retained an attorney to handle estate. Respondent provided with all relevant information and records for filing a federal estate tax return, which under § 6075(a) Internal Revenue Code was required be filed within nine months decedent's death. inquired from time as preparation return assured that it would on time. But three late, apparently because clerical oversight in omitting date attorney's calendar. Acting pursuant 6651(a)(1) Code, provides penalty failure file when due "unless is shown such reasonable cause not willful neglect," Service assessed late filing. paid suit Federal District Court refund, contending unjustified "due cause," i.e., reliance attorney. The agreed granted summary judgment respondent. Appeals affirmed. Held: make timely excused by taxpayer's agent, "reasonable cause" 6651(a)(1). While engaging assist probate proceedings plainly exercise "ordinary business care prudence" Treasury Regulation requires taxpayer demonstrate excuse filing, this does answer question presented here. To say "reasonable" respondent assume meet statutory deadline may resolve matter between them, but respect respondent's obligation statute. It no special training or effort part ascertain ensure met. That attorney, expected attend relieve principal duty deadline. Pp. 245-252. 710 F.2d 1251 (CA7 1983), reversed. Albert G. Lauber, Jr., Washington, D.C., petitioner. Thomas E. Davies, Morton, Ill., Chief Justice BURGER delivered opinion Court. 1 We certiorari conflict among Circuits whether prepare constitutes so defeat incurred 2 * A. 3 Robert W. Boyle, appointed will mother, Myra who died September 14, 1978; Ronald Keyser serve informed must he did mention return. Under 26 U.S.C. 6075(a), death, later than June 1979. 4 Although businessman, experienced field taxation, other having been father's 20 years earlier. undisputed relied instruction guidance. He cooperated fully records. wife contacted number times during spring summer 1979 inquire about progress return; they were notified "in plenty time." App. 39. When called 6, 1979, learned first then overdue. Apparently, had overlooked Keyser's master met 11, 13, late. B 5 6651(a)(1), against additional $17,124.45 $1,326.56 interest. Section reads pertinent part: 6 "In case . any prescribed therefor ., unless neglect, there shall added amount percent if more month, each month fraction thereof continues, exceeding 25 aggregate ." (Emphasis added.) 7 A that, show "exercised ordinary prudence nevertheless unable CFR 301.6651-1(c)(1) (1984).1 8 claim refund. conceded assessment interest proper, contended brought United States Court, concluded controlled Appeals' holding Rohrabaugh v. States, 611 211 1979). In Rohrabaugh, Seventh Circuit held upon counsel when: (1) unfamiliar law; (2) makes full disclosure facts relies upon, maintains contact administration estate; (3) has otherwise exercised prudence. F.2d, at 215, 219. established accordingly, ordered refund penalty. divided panel Circuit, opinions, (1983). 9 certiorari, 466 903, 104 1676, 80 152 (1984), we reverse. II 10 Congress' purpose civil returns end liability ascertained promptly. provision clear; mandates 6075(a).2 Failure comply incurs ultimately determined maximum base tax. escape penalty, bears heavy burden proving both result "willful cause." 11 meaning these two standards become clear over near-70 their presence statutes.3 As used here, term neglect" read conscious, intentional reckless indifference. See Orient Investment & Finance Co. Commissioner, U.S.App.D.C. 74, 75, 166 601, 602 (1948); Hatfried, Inc. 162 628, 634 (CA3 1947); Janice Leather Imports Ltd. 391 F.Supp. 1235, 1237 (SDNY 1974); Gemological Institute America, Riddell, 149 128, 131-132 (SD Cal.1957). Like defined calls "unable time."4 301.6651(c)(1) (1984); accord, e.g., Fleming 648 1122, 1124 1981); Ferrando 245 582, 587 (CA9 1957); Haywood Lumber Mining 178 769, 770 (CA2 1950); Southeastern 153 205 (CA5 1946); Girard 122 843, 848 1941); see also n. 1, supra. Commissioner contend reckless. resolved whether, statute, instant circumstances 12 affirming recognized difficulties its formulation bound placed great importance fact engaged services specializing matters duly proceedings. id., 219, emphasized narrowly drawn closely tailored before it. court stressed issue case-by-case basis. 1253-1254; 1254 (Coffey, J., concurring). 13 Other Courts have dealt reached contrary conclusions.5 582 1957), taxpayers personal nondelegable time, fulfill constitute tardy Id., 589. Fifth similarly responsibility ensuring alone, advisers—accountants attorneys—is Millette Associates 594 121, 124-125 (per curiam), cert. denied, 444 899, 100 207, 62 135 (1979); Logan 365 846, 854 (1966). Eighth Smith 702 741, 743 (1983) curiam); Boeving 650 493, 495 (1981); Lillehei 638 65, 66 (1981) curiam). III 14 need dwell similarities differences conflicting holdings. come rule "bright" line can consistent statute implementing regulations.6 Deadlines are inherently arbitrary; fixed dates, however, often essential accomplish necessary results. Government millions monitor, our system self-assessment initial calculation simply cannot work basis one strict standards. Any less rigid standard risk encouraging lax attitude toward dates.7 Prompt payment taxes imperative Government, should unnecessary ad hoc determinations.8 15 Congress prompt executor, some agent employee executor. intended place deadline, except very narrow range situations. Engaging regulations, provide face executor's obligations charged unambiguous, precisely months; extensions fairly routinely. 16 This erroneous advice concerning law. frequently shows reasonably accountant even turned out mistaken. See, Kroll, 547 393, 395-396 1977); American Assn. Engineers Employment, Inc., 204 19, 21 1953); Burton Swartz Land Corp. 198 558, 560 1952); 771; U.S.App.D.C., 603; 633-635; 848; Dayton Bronze Bearing Gilligan, 281 Fed. 709, 712 (CA6 1922). implied situation, adviser Lane-Wells Co., 321 64 511, 88 L.Ed. 684 (1944) (remanding determination cause, advised required).9 17 advises law, exists, rely advice. Most competent discern error substantive require challenge seek "second opinion," try monitor provisions himself nullify seeking presumed expert place. Lumber, supra, 771. "Ordinary do demand actions. 18 By contrast, know dates due. short, imply deadlines. Reliance lay person lawyer course common; function substitute compliance unambiguous Among duties representative identify assemble assets decedent obligations. common practice engage professional perform task personally. unknown returns, take inventories, carry significant steps uncommon conduct without counsel. 19 sure ordered. BRENNAN, whom MARSHALL, POWELL, O'CONNOR join, concurring. 22 I concur found might plausibly characterized ambiguous,1 courts almost 70 interpreted imposing prudence." Ante, 245-246. agree defer long-standing construction. 246, 4. deadlines those correctly holds, avoid reach merely delegating accountant, individual. 250, 252.2 23 write separately, underscore expressly leaves open. Specifically, believe substantial argument applicable only person"—namely, physically mentally capable knowing, remembering, complying case, failed monitoring estate, made showing usual diligence outcome could different able reasons incompetence infirmity, understandably circumstances, well good reason harsh above §§ 6601(a), 6621(b). 24 proclaims "for 'bright' drawn," stresses "should determinations." 248,249. On hand, notes "bright line" cover "incapable objective meeting criteria 'ordinary prudence,' " reasoning "the disability alone acceptable filing." 692, 6. share Court's reservations sweep rule. If draw "burden" "ad determinations," exemptions provision. emphasized, where demonstrates Accordingly, IRS already allows dispensations where, example, member family seriously ill, unavoidably absent, destroyed. Manual (CCH) 4350, (24) ¶ 22.2(2) (Mar. 20, 1980) (Audit Technique Tax Examiners). Thus itself eschewed bright-line committed necessarily decision-making. gravamen IRS's seems penalized appear interpret enumerated being exclusive, 22.2(3), act arbitrarily purported otherwise.3 draconian apply convincingly whatever reason, care. Many executors widows widowers along years, "estate" usually inheritance. Moreover, principles announce today force income every individual receives annual gross $1,000 more. 6651(a)(1); 6012. overwhelming majority understanding deadlines, exceptional cases arise taxpayers, virtue senility, mental retardation, causes, attain society's norm. properly emphasizes efficient collection stern incentives. 248-249. me decision efficiency yield values appropriate circumstances. 27 Because here prudence, decide what presents evidence adhere entitled relief left open another day, join opinion. articulated eight considers These include unavoidable postal delays, wrong office, officer employee, death serious illness immediate family, absence, destruction casualty business, furnish forms fashion, inability visit office attempt secure aid asserted implicate reasons, district director determines reasonable. "A delinquency appears intelligence delay clearly negatives neglect accepted reasonable." 22.2(3). 6081(a) authorizes grant "a extension time," generally longer six months, language statutes 1916. For many 3176 mandated 50 refusal sickness list verify same Rev.Stat. (emphasis added). Act 1916 amended "except voluntarily notice collector after addition tax." 1916, ch. 463, 16, 39 Stat. 756, 775 No committee reports congressional hearings debates discuss change language. logical replace "refusal"—both expressions implying failure—and "[absence of] "neglect"—both carelessness. contends construed willfulness only, incompatible construction argues converts into test care," never guilty neglect." construing equivalent urges, removed consideration willfulness. accept reasoning. obviously absence fault prerequisite avoidance late-filing 3, therefore prove neither carelessness, indifference, nor failure. Thus, Service's correlation intent, 40 law well. interpretation merits deference. Chevron U.S.A. Natural Resources Defense Council, 467 837, 844, 2778, 2782, 81 694 (1984). point Sixth re Fisk's Estate, 203 358, 360 (1953), now following Geraci 32 TCM 424, 425 (1973), aff'd, 502 1148 1974), 420 992, 95 1428, 43 673 (1975); Duttenhofer 49 T.C. 200, (1967), 410 302 1969) curiam ). administrative regulations practices exempt filings tardiness results illness, factors largely beyond control. 243, 1. principle underlying practices—that control—already recognizes exceptions us pass today. default was, incapable involve effect disability; involves employed taxpayer, limited rather wide issues future regulations. Those potential purely hypothetical moment bearing us. concurring part. After four pages discussion, concludes: "Because penalty." Post, 695. conclusion unquestionably correct. also, Reed Ross, 468 8, 5, 2901, 2906, 82 Heckler Day, 104, 119, nn. 33 34, 2249, 2257-2258, 34 Kosak 465 848, 853, 1519, 1523, 79 860 Bell New Jersey, 461 773, 779, 4, 103 2187, 2191, 76 312 systems collect administering collection. J. Wagner, France's Soak-the-Rich Tax, Congressional Quarterly (Editorial Research Reports), 12, 1982; Dodging Taxes Old World, Time, Mar. 28, 1983, p. 32. indicated fact, particular situation case. Mayer 351 617 1965) ), 383 935, 86 1065, 852 (1966); Coates 234 459, 462 (CA8 1956). view entirely Whether elements present given 772 Daley 480 808, 811 (ND faced recurring appeals reluctant formulate deal situation. differed when, files actual erroneously told him available. Compare Sanderling, 571 174, 178-179 1978) (finding situation); Rapelje 73 82, 90, (1979) (same); DiPalma 71 324, 327 (1978) (same), acq., 1979-1 Cum.Bull. 1; Bradley 70, 72-73 (1974) 511 527 1975), Kerber 717 454, 454-455, 1983) ) (no cause"), pending, 83-1038; 742 Sarto 563 476, 478 Cal.1983) (same). address ourselves issue. overdue, mandatory 5% (up 25%) [the time] Judge Posner observed dissent below, making 'willful neglect' opposite 'reasonable cause' seem modified 'reasonable' 1251, 1256 1983). emphasizes, non-delegation extend situations questions exists instance. 250-251. difficult perceive material distinction, absence—situations excuses comes infirm incompetent. thread running through unfortunate control,

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