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V. Penalties and Additions to Tax
Section 6651(a)(1) imposes an addition to tax for the
failure to file timely a required return unless the failure is
due to reasonable cause and not due to willful neglect.
Petitioners bear the burden of proving that their failure to file
timely was due to reasonable cause and not to willful neglect.
Rule 142(a).
Petitioners filed their 1988 Federal income tax return on
February 3, 1993. The return was required to be filed on or
before April 15, 1989. Petitioners have not shown that their
delinquent filing was due to reasonable cause. Therefore, they
are liable for the section 6651(a)(1) addition to tax for 1988 as
determined by respondent.
For the 1988 taxable year, section 6653(a)(1) and (2)
provides for an addition to tax equal to 5 percent of the
underpayment if any part of an underpayment is due to negligence.
For 1989, section 6662(a) and (b)(1) provides for an accuracy-
related penalty equal to 20 percent of the portion of the
underpayment that is attributable to negligence or disregard of
rules or regulations. Negligence is the lack of due care or
failure to do what a reasonable and ordinarily prudent person
would do under the circumstances. Neely v. Commissioner, 85 T.C.
934, 947 (1985). Respondent’s determination of negligence is
presumed to be correct, and the taxpayer has the burden of
proving that the determination is erroneous. Rule 142(a).
Therefore, petitioners must show that they were not negligent;
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