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Commissioner, 98 T.C. 590 (1992); LTV Corp. v. Commissioner, 64
T.C. 589 (1975).
We hold that petitioners are entitled to deduct $3,000
against ordinary income for each of the years before us, on
account of their capital loss carryover to these years.
III. Additions to Tax
A. Section 6651(a)(1)
Section 6651(a)(1)15 imposes an addition to tax of 5 percent
per month (with a maximum of 25 percent) in case of failure to
file a timely income tax return, unless it is shown that this
failure is due to reasonable cause and not due to willful
neglect. Petitioners have the burden of proving error in
respondent’s determination that this addition to tax should be
15 Sec. 6651(a) provides, in pertinent part, as follows:
SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX.
(a) Addition to the Tax.--In case of failure--
(1) to file any return required under
authority of subchapter A of chapter 61 * * *
on the date prescribed therefor (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, there shall be added to the
amount required to be shown as tax on such
return 5 percent of the amount of such tax if
the failure is for not more than 1 month,
with an additional 5 percent for each
additional month or fraction thereof during
which such failure continues, not exceeding
25 percent in the aggregate;
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