- 8 -
the two remaining issues.” This document therefore does not
purport to settle all issues. Furthermore, no subsequent
documents disposing of the addition to tax and penalty questions
have been filed. Respondent’s determinations thus cannot be
construed as in violation of a fully stipulated settlement.
Section 6651(a) Addition to Tax
Section 6651(a) provides, in relevant part, as follows:
SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX.
(a) Addition to the Tax.--In case of failure–
(1) to file any return required under
authority of subchapter A of chapter 61 * * * , on the
date prescribed therefor (determined with
regard to any extension of time for filing),
unless it is shown that such failure is due to
reasonable cause and not due to willful neglect, there
shall be added to the amount required to be shown as
tax on such return 5 percent of the
amount of such tax if the failure is for 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.
The Supreme Court has characterized this section as imposing a
civil penalty to ensure timely filing of tax returns and as
placing on the taxpayer “the heavy burden of proving both (1)
that the failure did not result from ‘willful neglect,’ and (2)
that the failure was ‘due to reasonable cause’”, in order to
escape the penalty. United States v. Boyle, 469 U.S. 241, 245
(1985). “Willful neglect” denotes “a conscious, intentional
failure or reckless indifference.” Id. “Reasonable cause”
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011