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Issue 4. Dividend Income
Respondent determined that the $573 distribution petitioners
received from a qualified plan in 1989 should be included in
petitioners' income. Petitioners argue that the distribution was
rolled over into another qualified plan. We sustain respondent's
determination, as petitioners have presented no evidence
demonstrating that the distribution was properly reinvested.
Rule 142(a).
Issue 5. Addition To Tax for Failure To Timely File
Respondent determined an addition to tax under section
6651(a) for petitioners' failure to timely file their 1990
Federal income tax return. Such addition is presumed correct and
will be upheld unless the taxpayer presents evidence
controverting its applicability. Abramo v. Commissioner, 78 T.C.
154, 163 (1982).
Section 6651(a)(1) provides for an addition to tax for
failure to file a Federal income tax return by its due date
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. Calendar year individual
taxpayers must file their Federal income tax return by April 15
following the close of the calendar year. Sec. 6072(a). In this
case, respondent concedes that petitioners were granted an
extension of time to file their 1990 income tax return until
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