Henry F. K. Kersting - Page 17




                                       - 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 5              








Page:  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