Stanley J. Zaban and Shirley A. Zaban - Page 33

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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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