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Section 6651(a)(1) Addition to Tax
Respondent also determined that petitioners are liable for
the section 6651(a)(1) addition to tax for 1991. Section
6651(a)(1) imposes an addition to tax for failure to file timely
a return, unless the taxpayer establishes that the failure did
not result from “willful neglect” and that the failure was due to
“reasonable cause”. 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).
“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 taxpayers to demonstrate that they exercised ordinary
business care and prudence and were nonetheless unable to file a
return within the prescribed time. Id. at 246; sec. 301.6651-
1(c)(1), Proced. & Admin. Regs.
Petitioners bear the burden of proving that respondent’s
determination is incorrect. Rule 142(a); Cluck v. Commissioner,
105 T.C. 324, 339 (1995). Petitioners failed to offer any
evidence or explanation regarding the late filing of their 1991
return. Thus, respondent’s determination that petitioners are
liable for the section 6651(a)(1) addition to tax for 1991 will
be sustained.
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