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Petitioner testified that he thought he was entitled to a
tax refund, and that taxpayers who are entitled to a refund are
not required to request an extension if they file after the due
date. Petitioner's testimony included the statement "I don't
know where I came up with that idea".
Petitioners' erroneous belief that no taxes are due does not
constitute reasonable cause for the failure to timely file their
income tax return. See Krieger v. Commissioner, T.C. Memo. 1993-
347, affd. without published opinion 64 F.3d 657 (4th Cir. 1995);
Adams v. Commissioner, T.C. Memo. 1982-223, affd. without
published opinion 732 F.2d 159 (7th Cir. 1984). Under these
circumstances, we conclude that petitioners' failure to timely
file their income tax return for 1991 was not due to reasonable
cause. Accordingly, we hold that the addition to tax pursuant to
section 6651(a) is properly imposed.
Issue 3. Accuracy-Related Penalty
Respondent determined that petitioners are liable for an
accuracy-related penalty pursuant to section 6662(a) for either
negligence or disregard of rules or regulations or the
substantial understatement of income tax. Section 6662 provides
for the imposition of a penalty equal to 20 percent of the
portion of an underpayment which is attributable to negligence or
disregard of rules or regulations. See sec. 6662(a) and (b)(1).
For purposes of this section, the term "negligence" includes any
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