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Commissioner, T.C. Memo. 1990-228; sec. 1.6081-1(b)(1), (5),
Income Tax Regs.
Section 6651(a)(1) provides for an addition to tax for
failure to file a timely return. The addition to tax is equal to
5 percent of the amount required to be shown as tax on the
return, with an additional percent for each additional month or
fraction thereof that the return is filed late, not exceeding 25
percent in the aggregate. For purposes of determining the number
of months in which the return is filed late, the date of filing
is the date on which the return is received by the Commissioner.
Schafler v. Commissioner, supra; Pryor v. Commissioner, T.C.
Memo. 1994-287.
A taxpayer may avoid the addition to tax by establishing
that the failure to file a timely return was due to reasonable
cause and not willful neglect. Rule 142(a); United States v.
Boyle, 469 U.S. 241, 245-246 (1985). A failure to file is due to
"reasonable cause" if the taxpayer exercised ordinary business
care and prudence and was, nevertheless, unable to file his
return within the date prescribed by law. Crocker v.
Commissioner, 92 T.C. 899, 913 (1989); Estate of Vriniotis v.
Commissioner, 79 T.C. 298, 310 (1982); sec. 301.6651-1(c)(1),
Proced. & Admin. Regs. Willful neglect is viewed as a conscious,
intentional failure or reckless indifference to the obligation to
file. United States v. Boyle, supra. Whether petitioner has
sufficiently shown reasonable cause and no willful neglect is a
question of fact to be decided on the entire record. Estate of
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