- 29 - 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 anPage: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
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