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taxpayer establishes that the failure was due to reasonable cause
and not willful neglect. Sec. 6651(a)(1). "Reasonable cause"
requires the taxpayer to demonstrate that he exercised ordinary
business care and prudence. United States v. Boyle, 469 U.S.
241, 246 (1985). Willful neglect is defined as a "conscious,
intentional failure or reckless indifference." United States v.
Boyle, supra at 245. Petitioner provided no evidence regarding
her failure to file her returns for 1994 and 1995. Accordingly,
we sustain respondent’s determination on this issue.
We now consider whether petitioner is liable for the
additions to tax under section 6654(a) for underpayments of
estimated taxes for 1994, 1995, and 1996. Section 6654(c)
imposes a requirement that estimated taxes be paid in
installments. If a taxpayer fails to pay a sufficient amount of
estimated taxes, section 6654(a) provides for a mandatory
addition to tax in the absence of exceptions not applicable here.
Grosshandler v. Commissioner, 75 T.C. 1, 20-21 (1980).
Petitioner is liable for the additions to tax under section 6654.
Decision will be entered
for respondent.
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Last modified: May 25, 2011