- 17 - not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. Sec. 6651(a)(1). To escape the addition to tax for filing late returns, petitioner has the burden of proving (1) that the failure to file did not result from wilful neglect, and (2) that the failure was due to reasonable cause. See United States v. Boyle, 469 U.S. 241, 245 (1985). Reasonable cause requires taxpayers to demonstrate that they exercised "ordinary business care and prudence" but nevertheless were "unable to file the return within the prescribed time." Sec. 301.6651-1(c)(1), Proced. and Admin. Regs. For all relevant years, petitioner failed to file returns. The record in this case is void of any evidence of the reason for this failure. Thus, the record is void of evidence that the failure was for reasonable cause. We sustain respondent's determination of additions to tax under section 6651(a)(1) for all years. Respondent determined additions to tax for negligence for 1982 through 1988. Respondent determined petitioner's underpayment of income tax in each year was due to negligence or intentional disregard of rules or regulations. For 1982 through 1985, section 6653(a)(1) imposes an addition to tax equal to 5Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011