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GMS had been reported on any prior return. Petitioners have
failed to show that there was full disclosure.
Petitioners have failed to carry their burden in proving
good faith reliance on their preparers. Therefore, we sustain
respondent’s imposition of the accuracy-related penalties for all
years at issue.
Addition to Tax for Delinquency
Respondent determined that petitioners are liable for each
of the years 1989 and 1991 for the addition to tax under section
6651(a)(1) because they failed to file timely their Federal
income tax return for each year.
In the case of failure to file an income tax return on the
date prescribed for filing, section 6651(a)(1) imposes an
addition to tax equal to 5 percent of the amount required to be
shown on the return, with an additional 5 percent to be added for
each month or partial month during which such failure continues,
not to exceed 25 percent in the aggregate.
Petitioners’ 1989 return was due on April 15, 1990, but
petitioners received an automatic 4-month extension through the
filing of Form 4868. In August 1990, petitioners sought and
received an additional 2-month extension to October 15, 1990,
through the filing of Form 2688. Petitioners’ return was stamped
as received by the IRS on October 25, 1990. Petitioners’ 1991
return was due on April 15, 1992, but they filed Forms 4868 and
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