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Respondent determined that petitioner is liable under
section 6651(a)(1) for his failure to file returns for 1986
through 1988. In addition to the facts presented in this case,
respondent pleaded and relies upon the doctrine of collateral
estoppel to establish petitioner's liability under section
6651(a)(1). This argument is based upon the fact that petitioner
was convicted under section 7203 of willful failure to file
income tax returns for 1986 through 1988.
Section 6651(a)(1) imposes a 5-percent addition to tax each
month for failure to file a tax return. The addition is not to
exceed 25 percent in the aggregate. A section 6651(a)(1)
addition to tax is warranted where a taxpayer fails to file a
timely return unless the taxpayer shows that his failure to do so
was due to reasonable cause and not due to willful neglect.
Where the taxpayer exercised ordinary business care and prudence
and was nevertheless unable to file the return within the
prescribed time, the delay is deemed due to reasonable cause.
Sec. 301.6651-1(c), Proc. & Admin. Regs.
As previously noted, the doctrine of collateral estoppel is
intended to avoid repetitious litigation by precluding the
relitigation of any issue of fact or law that was actually
litigated and that culminated in a valid and final judgment.
Montana v. United States, 440 U.S. at 153; Kotmair v.
Commissioner, 86 T.C. 1253, 1262 (1986). The fact that was
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