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25 percent. An addition to tax is imposed under section 6656(a)
for failure to make timely deposit of tax with a Government
depositary, unless it is shown that such failure was due to
reasonable cause and not due to willful neglect. For additions
to tax assessed after October 21, 1986, the amount of the
addition under section 6656(a) is 10 percent of the underpayment.
Sec. 6656(a). For deposits required to be made after
December 31, 1989, the addition is 10 percent of the underpayment
in cases where the delinquency persists for 15 days or more.
Sec. 6656(b)(1)(A)(iii).
For purposes of both sections, the delinquency is due to
reasonable cause if the taxpayer exercised ordinary business care
and prudence but was nevertheless unable to perform its tax
obligations in timely manner. Brewery v. United States, 33 F.3d
589, 592 (6th Cir. 1994); In re Biomaterials Corp., 954 F.2d 919,
923 (3d Cir. 1992); Housden v. Commissioner, T.C. Memo. 1992-91;
sec. 301.6651-1(c)(1), Proced. & Admin. Regs. The delinquency is
due to willful neglect if it resulted from a conscious decision
or from reckless indifference. United States v. Boyle, 469 U.S.
241, 245 (1985). The plain language of the proviso in both
sections 6651(a)(1) and 6656(a) requires that reasonable cause
and the absence of willful neglect be established as of the time
that performance of the relevant obligation was due.
See Industrial Indemnity v. Snyder, 54 AFTR 2d 84-5127, 84-1 USTC
par. 9507 (E.D. Wash. 1984). Thus, whether the taxpayer acts in
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