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The third issue for decision is whether petitioner is liable
for the section 6651(a)(1) addition to tax.
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a return, unless the taxpayer establishes that such
failure is due to reasonable cause and not due to willful
neglect. "Reasonable cause" requires the taxpayer to demonstrate
that it exercised ordinary business care and prudence and was
nonetheless unable to file a return within the prescribed time.
United States v. Boyle, 469 U.S. 241, 245-246 (1985). "Willful
neglect" means a conscious, intentional failure or reckless
indifference. Id. The addition to tax equals 5 percent of the
tax required to be shown on the return if the failure to file is
for not more than 1 month, with an additional 5 percent for each
additional month or fraction of a month during which the failure
to file continues, not to exceed a maximum of 25 percent. Sec.
6651(a)(1).
Petitioner testified that he thought that he was not
required to file a return for 1992 because he believed that his
gross income for 1992 was less than $5,900. Section 6012
provides that an individual with a filing status of single must
file an income tax return for any taxable year in which his
"gross income" exceeds the sum of the section 151(d)(1) exemption
amount and the section 63(c)(2) basic standard deduction for such
individual. Sec. 6012(a)(1)(A)(i). The sum of these amounts for
petitioner's 1992 taxable year was $5,900. However, petitioner's
reported gross income for 1992 was $31,452, consisting of
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