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OPINION
Petitioners bear the burden of proving that they are not
liable for additions to tax under sections 6651(a)(1), 6653(a),
and 6661. Rule 142(a).
1. Section 6651(a)(1)
Section 6651(a)(1) imposes an addition to tax for failure to
file an income tax return by the prescribed due date (including
any extensions). The amount of the addition is 5 percent of the
amount of tax required to be shown on the return for each month
that the delinquency continues, up to a maximum of 25 percent.
The addition to tax does not apply when the failure to file was
due to reasonable cause and not due to willful neglect. Sec.
6651(a)(1). To establish reasonable cause a taxpayer must
demonstrate that he exercised ordinary business care and prudence
but was nevertheless unable to file within the prescribed time
period. Sec. 301.6651-1(c), Proced. & Admin. Regs.
Petitioners contend that they exercised ordinary business
care and prudence in relying on the advice of a certified public
accountant that it was more appropriate to file a late return
than to file a timely return on the basis of incomplete and
inaccurate information. They argue that such reliance
constitutes reasonable cause, citing United States v. Boyle, 469
U.S. 241, 251 (1985). We disagree.
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Last modified: May 25, 2011