- 19 -
additional month or partial month during which the failure
continues, not exceeding 25 percent in the aggregate. The
addition to tax does not apply where the taxpayer demonstrates
that the failure to file timely was due to reasonable cause and
not willful neglect. Sec. 6651(a)(1). The question whether a
failure to file timely is due to reasonable cause and not willful
neglect is one of fact, on which petitioner bears the burden of
proof. Rule 142(a); Lee v. Commissioner, 227 F.2d 181, 184 (5th
Cir. 1955), affg. a Memorandum Opinion of this Court.
Petitioner has produced no evidence explaining the late
filing of her 1993 return. Accordingly, we hold that petitioner
is liable for the section 6651 addition to tax.
Accuracy-Related Penalty
Respondent determined that petitioner is liable for an
accuracy-related penalty pursuant to section 6662. Section
6662(a) imposes a 20-percent penalty on the portion of an
underpayment of tax that is attributable to, inter alia,
negligence or disregard of rules or regulations. The term
"negligence" includes any failure to make a reasonable attempt to
comply with the provisions of the Code, including failure to
exercise due care, failure to do what a reasonable person would
do under the circumstances, or failure to keep adequate books and
records to substantiate items properly. Sec. 1.6662-3(b)(1),
Income Tax Regs. The term "disregard" includes any careless,
reckless or intentional disregard of the Code or of the temporary
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011