- 6 -
that he did not need to worry about the filing. This
was not true. The reason for this misinformation being
given is not known, but it is believed to be a
combination of the illness and old age of the
accountant. When the new accountant became aware that
the proper steps to timely file the return had not been
taken, he immediately took steps to hand deliver checks
for the estimated amount due to the IRS, which amount
can be seen in the return. The money to pay the
estimate was always available, and if the true facts
had been known, the money would have been paid in a
timely fashion. As it turns out, there was an
underestimate paid because of incomplete information
available at the time, and there is a balance due on
the return, but the estimate made at the time was a
good faith estimate based on the available information.
The fact that additional information kept coming to
light after this estimate is also the reason that the
return took so long to complete.
The Commissioner assessed the amount of tax shown on the
return, and assessed the following additions to tax: $67.135.73
for untimely filing under section 6651(a)(1) and $9,981.58 for
untimely payment under section 6651(a)(2). The addition to tax
under section 6651(a)(2) is computed as follows:
4 months x .5% x $225,400 = $4,508.00
15 months x .5% x $72,981 = 5,473.58
9,981.58
On April 21, 1997, the Commissioner issued to the estate a notice
of deficiency listing a $9,716 deficiency and a $2,429 addition
thereto under section 6651(a)(1).
OPINION
We must decide whether the estate is liable for the
additions to tax determined by respondent under section
6651(a)(1) and (2), bearing in mind that the estate has the
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