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Pursuant to section 6501((3), in the case of the failure to
file a return, the tax may be assessed or a proceeding in court
for the collection of such tax may be begun without assessment at
any time. Accordingly, respondent is sustained on this issue
The third issue for decision is whether petitioner is liable
for section 6651(a)(1) additions to tax. Section 6651(a)(1)
imposes an addition to tax for failure to timely file a return,
unless the taxpayer establishes: (1) The failure did not result
from "willful neglect"; and (2) the failure was "due to
reasonable cause". "Willful neglect" has been interpreted to
mean a conscious, intentional failure, or reckless indifference.
United States v. Boyle, 469 U.S. 241, 245-246 (1985).
"Reasonable cause" requires the taxpayer to demonstrate that he
exercised ordinary business care and prudence and was nonetheless
unable to file a return within the prescribed time. United
States v. Boyle, supra at 246; sec. 301.6651-1(c)(1), Proced. and
Admin. Regs. The addition to tax equals 5 percent of the tax
required to be shown on the return for the first month, with an
additional 5 percent for each additional month or fraction of a
month during which the failure to file continues, not to exceed a
maximum of 25 percent. Sec. 6651(a)(1).
Petitioner made no attempt to comply with the law.
Accordingly, respondent's determinations with respect to the
additions to tax under section 6651(a) are sustained.
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Last modified: May 25, 2011