American Valmar International Ltd., Inc., et al. - Page 24

                                                - 24 -                                                   
            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                            




Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011