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Issue 6. Addition to Tax for Failure To File
The final issue for decision is whether petitioners are liable
for the addition to tax for failure to timely file their 1989 joint
return. Respondent determined an addition to tax of 15 percent for
petitioners' failure to timely file their 1989 return. Mrs. Zaban
asserts a reasonable cause defense.
Section 6651(a)(1) imposes an addition to tax of 5 percent for
each month or fraction thereof in which an income tax return is not
filed after the prescribed filing date. An exception is provided
for reasonable cause not the result of willful neglect. Id.
Petitioners were granted an extension for filing their 1989
joint return to August 15, 1990, but did not file the return until
October 18, 1990. Petitioners did not establish reasonable cause
for the failure to timely file their 1989 return, and thus they
failed to meet their burden of proof. Rule 142(a). We hold that
petitioners are liable for the addition to tax under section
6651(a)(1).
To reflect the foregoing and the concessions of the parties,
Decision will be entered
under Rule 155.
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