- 37 -37
III. Additions to Tax Under Sec. 6651
Respondent determined that petitioner AJF was liable for the
additions to tax imposed by section 6651(a). Section 6651(a)
imposes an addition to tax for failing to file a timely income
tax return, unless such failure to file is due to reasonable
cause and not due to willful neglect. The addition to tax is 5
percent of the amount required to be reported on the return for
each month or fraction thereof during which such failure to file
continues, but not to exceed 25 percent in the aggregate. Sec.
6651(a). In this case, AJF's 1988, 1989, and 1990 tax returns
were due on March 15, 1989, 1990, and 1991, respectively. Sec.
6072(b). AJF filed its 1988 and 1989 returns on May 10, 1991,
and its 1990 return on July 17, 1991. Unless AJF can show that
its failure to timely file its returns was due to reasonable
cause and not due to willful neglect, respondent's determination
will be sustained.
The term "reasonable cause" as set forth in section 6651(a)
has been defined as the exercise of ordinary business care and
prudence. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
"Willful neglect" means a "conscious, intentional failure or
reckless indifference." United States v. Boyle, 469 U.S. 241,
246 (1985). The question of whether a failure to file timely is
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