- 65 -
to carry this burden.
From the foregoing, we conclude that petitioner is liable for
the self-employment tax imposed by section 1401 for 1983, 1985,
and 1986 to the extent that petitioner has self-employment income,
as determined by our holdings on the Schedule C income and
deductions issues.
We hold for respondent on this issue.
V. Additions to Tax
A. Section 6651(a)(1)
Section 6651(a)(1)19 imposes an addition to tax of 5 percent
per month (with a maximum of 25 percent) in case of failure to
file a timely income tax return, unless it is shown that this
failure is due to reasonable cause and not due to willful neglect.
Petitioner has the burden of proving error in respondent's
19Sec. 6651(a)(1) provides, in pertinent part, as follows:
SEC.6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX.
(a) Addition to the Tax.--In case of failure--
(1) to file any return required under authority
of subchapter A of chapter 61 * * * on the date
prescribed therefor (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, there shall be added to the amount
required to be shown as tax on such return 5 percent of
the amount of such tax if the failure is for not more
than 1 month, with an additional 5 percent for each
additional month or fraction thereof during which such
failure continues, not exceeding 25 percent in the
aggregate;
Page: Previous 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 NextLast modified: May 25, 2011