- 38 -
result of the full disclosure by a taxpayer of relevant facts, it
is not reasonable cause for failure to file a return. See Paula
Constr. Co. v. Commissioner, 58 T.C. 1055, 1061 (1972), affd.
without published opinion 474 F.2d 1345 (5th Cir. 1973). Because
of the failure of petitioner to establish facts sufficient to
show reasonable cause for decedent's failure to file his 1982
gift tax return, we sustain respondent's determination of the
additions to gift tax under section 6651(a)(1). Likewise, the
evidence fails to show that decedent was unaware that the value
of the gifts he made in 1982 was sufficient to require the
payment of gift tax. If he did have knowledge that a gift tax
was due and did not file a return showing the tax due, and the
record does not show to the contrary, the underpayment is due to
negligence. Therefore, we sustain respondent's additions to gift
tax under section 6653(a)(1) and (2) for the year 1982.
Because of the issues disposed of by agreement of the
parties, as well as our holdings herein,
Decisions will be entered
under Rule 155.
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Last modified: May 25, 2011