- 10 - return was extended for the maximum period permitted by the regulations, to August 28, 1991. Petitioner's estate tax return, however, was not filed until January 24, 1992, almost 5 months after the extended due date. Petitioner does not dispute that petitioner's estate tax return was not filed timely, nor does petitioner take issue with the denial of the second extension request.1 Section 6651(a)(1) provides that, in the case of 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 timely 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); Constantino v. United States, 56 AFTR 2d 85-6551, at 85-6552, 85-2 USTC par. 13,629, at 90,429 (N.D. Cal. 1985). Reasonable cause for delay is established where a taxpayer is unable to file timely despite the exercise of ordinary 1 See Estate of La Meres v. Commissioner, 98 T.C. 294, 321 n.24 (1992) (citing Estate of Young v. Commissioner, T.C. Memo. 1983-686). Petitioner does not raise any issue concerning the validity of the regulation.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011