Donald D. Bowers and Deborah Bowers - Page 36

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            Addition to Tax Under Section 6651(a)(1)                                                   
               Section 6651(a)(1) imposes an addition to tax for failure to                            
            file a return on the date prescribed (determined with regard to                            
            any extension of time for filing), unless it is shown that such                            
            failure is due to reasonable cause and not due to willful                                  
            neglect.  The taxpayer has the burden of proof to show the                                 
            addition is improper.  United States v. Boyle, 469 U.S. 241, 245                           
            (1985); Funk v. Commissioner, 687 F.2d 264, 266 (8th Cir. 1982),                           
            affg. T.C. Memo. 1981-506.                                                                 
               Petitioners received approval of their Application for                                  
            Additional Extension of Time To File until October 15, 1990.                               
            Their signatures on the Form 1040 were dated November 4, 1990;                             
            their 1989 return was received by the IRS on November 13, 1990.                            
            Petitioners did not include this issue in their trial memorandum,                          
            did not offer any evidence on the issue at trial, nor address it                           
            in their briefs.  Their return was not timely filed, and we                                
            consider petitioners to have conceded their liability for the                              
            delinquency addition.26                                                                    
            Accuracy-related Penalty Under Section 6662                                                
               Section 6662 imposes a penalty of 20 percent on any portion of                          
            an underpayment of tax attributable to negligence or disregard of                          

            26 Petitioners pleaded the statute of limitations as a                                     
            defense to the deficiency and additions, alleging that the notice                          
            of deficiency, mailed Oct. 14, 1993, was issued more than 3 years                          
            after the return was filed.  The facts show that the return was                            
            not filed until Nov. 13, 1990, and hence the notice of deficiency                          
            was timely issued.  We similarly consider petitioners to have                              
            conceded this issue.                                                                       



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