M.S. Food Stores, Inc. - Page 29

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          neglect.  This addition to tax is 5 percent of the tax required             
          to be shown on the return per month of such failure, up to 25               
          percent.  Sec. 6651(a)(1).  Respondent has determined that the              
          corporate petitioner's extensions of time to file for taxable               
          years ending September 30, 1987 and 1988 were invalid and that              
          the corporate petitioner is liable under this section.                      
               The corporate petitioner asserts that the extensions for               
          both years were valid, but offers no proof and no argument other            
          than that respondent did not prove the extensions to be invalid.            
          The corporate petitioner has the burden of proof to show the                
          additions are improper.  United States v. Boyle, 469 U.S. 241,              
          245 (1985); Funk v. Commissioner, 687 F.2d 264, 266 (8th Cir.               
          1982), affg. T.C. Memo. 1981-506.  The Commissioner may void an             
          extension where the taxpayer's request for extension is invalid             
          because of a failure to properly estimate tax liability.  Crocker           
          v. Commissioner, 92 T.C. 899, 911 (1989).  The corporate                    
          petitioner has not shown it made a bona fide and reasonable                 
          estimate of its tax liability at the time the requests for                  
          extension were made.  We hold for respondent on this issue.                 
          Additions to Tax and Penalties for Negligence                               
               Respondent has determined that all of the corporate                    
          petitioner's underpayments for the years at issue were due to               
          negligence or disregard of rules or regulations and imposed an              








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