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Issue 2. Section 6651(a) Addition to Tax for Delinquency
The next issue for our decision is whether petitioners are
liable for the addition to tax under section 6651 for failure to
timely file their 1990 joint Federal income tax return. Section
6651(a)(1) imposes an addition to tax in an amount equal to 5
percent of the amount required to be shown as tax on a return for
each month or fraction thereof for which a return is delinquent,
not to exceed 25 percent in the aggregate. The addition to tax
under this section does not apply if the taxpayer establishes
that the failure to timely file was due to reasonable cause and
not due to willful neglect. The burden of proof is on
petitioners to show the failure is due to reasonable cause and
not willful neglect. Rule 142(a).
Based upon review of the record in the instant case, we find
that petitioners have met their burden of showing that their
failure to timely file their return for 1990 was due to
reasonable cause and not due to willful neglect. Petitioners
testified that, in addition to caring for a sick child and
invalid parent, they lived apart during 1990 due to Mr. Hobson's
job, which separation caused a great deal of marital problems.
Petitioners argue that, as a result of their difficulties during
the taxable year at issue, their failure to timely file their
return was due to reasonable cause. We agree. Accordingly,
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Last modified: May 25, 2011