- 5 -
OPINION
The only issue remaining for decision is whether petitioner
is liable for the addition to tax provided by section 6651(a) for
failure to file timely. Petitioner concedes that she did not
file timely a Federal income tax return for her 1992 taxable
year. As petitioner did not obtain an extension of time for
filing, that return was due on or before April 15, 1993. Sec.
6072(a).
Section 6651(a)(1) provides that, in the case of a failure
to file a tax return on the date prescribed for filing (including
any extension of time for filing), there shall be added to the
tax required to be shown on the return an amount equal to 5
percent of that tax for each month or fraction thereof that the
failure to file continues, not exceeding 25 percent in the
aggregate. The addition to tax is mandatory unless it is shown
that the failure to file is due to reasonable cause and not
willful neglect. Sec. 6651(a)(1); Estate of Cavenaugh v.
Commissioner, 100 T.C. 407, 426 (1993), affd. in part and revd.
in part on other grounds 51 F.3d 597 (5th Cir. 1995).
Reasonable cause for delay is established where a taxpayer
is unable to file despite the exercise of ordinary business care
and prudence. Bassett v. Commissioner, 67 F.3d 29, 31 (2d Cir.
1995), affg. 100 T.C. 650 (1993); sec. 301.6651-1(c)(1), Proced.
& Admin. Regs. "Willful neglect" has been defined as a
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011