- 15 -
clear and convincing. Accordingly, we find that petitioner is
not liable for additions to tax or penalties based on fraud.
In the alternative, respondent determined that petitioner is
liable for the additions to tax for failure to timely file for
all the years in issue. Section 6651(a)(1) imposes an addition
to tax for a taxpayer's failure to file timely returns required
to be filed (including income tax returns), unless the taxpayer
can establish that such failure "is due to reasonable cause and
not due to willful neglect". The addition to tax is 5 percent of
the amount required to be shown on the return for each month
beyond the return's due date, not exceeding 25 percent. Sec.
6651(a)(1). Petitioner bears the burden of showing respondent's
determination to be in error and that there was reasonable cause
for his failure to timely file. Rule 142(a).
Respondent, in the alternative, also determined a 5-percent
addition to tax for each of the years 1986 through 1988 for
negligence or intentional disregard of rules or regulations.
Section 6653(a)(1)(A) for 1986 and 1987 and section 6653(a)(1)
for 1988 provide for a 5-percent addition to tax if any part of
the underpayment is due to negligence or intentional disregard of
rules and regulations. If section 6653(a)(1)(A) applies for 1986
and 1987, then section 6653(a)(1)(B) provides for a further
addition to tax equal to 50 percent of the interest attributable
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011