Victor D. Denenburg and Wife, Sandra J. Denenburg v. United States

WIENER, Circuit Judge:

Victor D. Denenburg (Taxpayer), and his wife, Sandra J. Denenburg, plaintiffs-appellants, paid penalties imposed by the Internal Revenue Service (IRS), under the Internal Revenue Code of 1954 (I.R.C.) § 6651, 1 for late filing of personal income tax returns for 1978 and 1979, then filed this suit in district court seeking refund of those penalties. The government filed a motion for summary judgment which the district court granted after finding that the accounting advice relied on by the Taxpayer and his wife did not constitute “reasonable cause” under I.R.C. §…