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consists of the testimony of Simon Bolonik (Bolonik), by whose
office the returns were filed and who testified that the returns
were mailed one week before the due dates. Bolonik testified:
“Mr. Markovski was one of my oldest clients and I basically
remember where I put -- if I mailed it [the return] or not. I
would take special care in mailing them.” We found Bolonik’s
testimony inexact and unconvincing, and we accord it no weight.
Moreover, two of the returns bear postmarks well after the
relevant due date. The returns in question were not timely
received by the Internal Revenue Service, and petitioners have
failed to satisfy the requirements of section 7502(a) that timely
mailing constitutes timely filing. We find that the returns in
question were filed on the dates received by the Internal Revenue
Service. The returns were, thus, not timely, and petitioners
have failed to show reasonable cause and lack of willful neglect.
Respondent’s determinations of additions to tax under section
6651(a) are sustained, adjusted only to take into account the
deficiencies redetermined by us.
B. Accuracy-Related Penalty
Respondent determined penalties against American Valmar and
Markovski for each of their respective years in issue under
section 6662(a).
Section 6662(a) provides for the imposition of an accuracy-
related penalty equal to 20 percent of any portion of an
underpayment attributable to, among other things, any substantial
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