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for additions to tax under section 6651 for TYE 8/31/89, TYE
8/31/90, and TYE 8/31/91; the addition to tax under section
6653(a) for TYE 8/31/89; and accuracy-related penalties under
section 6662(a) for TYE 8/31/90 and TYE 8/31/91.
Discussion
An addition to tax is imposed under section 6651 for failure
to file a return within the prescribed period, unless it is shown
that such failure was due to reasonable cause and not due to
willful neglect. Sec. 6651(a)(1). The amount of the addition is
5 percent of the amount required to be shown as tax for each
month that the delinquency persists, up to a maximum of
25 percent. Delinquent filing is due to reasonable cause if the
taxpayer exercised ordinary business care and prudence, but was
nevertheless unable to file its tax return in a timely manner.
Sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Reliance upon a
professional return preparer does not constitute reasonable cause
for failure to meet the filing deadline. United State v. Boyle,
469 U.S. 241, 253 (1985). The burden of proving reasonable cause
and the absence of willful neglect is on the taxpayer. Rule
142(a).
Petitioner filed its returns for TYE 8/31/89 and TYE 8/31/90
approximately 1 year late and its return for TYE 8/31/91 more
than 6 months late. Petitioner argues that it exercised ordinary
business care and prudence because it relied upon Modern to
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