- 19 - through 1987 the amount of the addition to tax was 5 percent of the entire underpayment plus 50 percent of the interest payable with respect to the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations. Sec. 6653(a)(1) and (2) (taxable years 1981 through 1985); sec. 6653(a)(1)(A) and (B) (taxable years 1986 and 1987). For taxable years 1980 and 1988 the addition to tax was an amount equal to 5 percent of the underpayment. Sec. 6653(a) (for taxable year 1980); sec. 6653(a)(1) (for taxable year 1988). Negligence is defined as the lack of due care or failure to do what a reasonable and ordinarily prudent person would do under the circumstances. Neely v. Commissioner, 85 T.C. 934, 947 (1985). The taxpayer bears the burden of proof. Rule 142(a); Bixby v. Commissioner, 58 T.C. 757, 791-792 (1972). Failure to file timely tax returns constitutes prima facie evidence of negligence. Emmons v. Commissioner, 92 T.C. 342, 349 (1989), affd. 898 F.2d 50 (5th Cir. 1990). “The type of evidence necessary to meet or rebut a prima facie case of negligence arising in a late filing situation is that which indicates the existence of an adequate and reasonable excuse or justification for the delinquent filing.” Id. at 350. Where the taxpayer’s evidence is insufficient to prove reasonable cause and absence of willful neglect for purposes of section 6651(a)(1), the taxpayer cannot carry its burden of proof for purposes ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011