Regina Felton, PC - Page 13
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Assuming, arguendo, that petitioner had timely submitted an
extension request, an extension would have given petitioner until
September 15, 2003, to file its 2002 return. Sec. 6081(a); sec.
1.6081-3, Income Tax Regs. Petitioner’s 2002 return was not
filed, however, until January 13, 2004. The return was still
late. The only bearing an extension would have had on the
instant case would be in the calculation of the addition to tax.
Because we are unpersuaded that a request for an extension of
time to file the return was properly sought, we need not consider
a recalculation of the addition to tax under section 6651(a).
“A failure to file a tax return on the date prescribed leads
to a mandatory penalty unless the taxpayer shows that such
failure was due to reasonable cause and not due to willful
neglect.” McMahan v. Commissioner, 114 F.3d 366, 368 (2d Cir.
1997). A showing of reasonable cause requires taxpayers to
demonstrate they exercised “ordinary business care and prudence”
but were nevertheless unable to file the return within the
prescribed time. United States v. Boyle, 469 U.S. 241 (1975);
sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
In its posttrial memorandum, petitioner contends that the
late filing of its return is attributable to the December 23,
2002, death of Ms. Felton’s mother after a long illness.
A taxpayer may have reasonable cause for failure to timely
file a return where the taxpayer or a member of the taxpayer’s
family experiences an illness or incapacity that prevents the
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