Horace M. Chambers - Page 8




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          proving respondent’s determination is in error.  See Rule 142(a).           
               A.  Additions to Tax Under Section 6651(a)(1) and (2)                  
               Section 6651(a)(1) provides for an addition to tax of 5                
          percent of the tax required to be shown on the return for each              
          month or fraction thereof for which there is a failure to file,             
          not to exceed 25 percent.  Section 6651(a)(2) provides for an               
          addition to tax of .5 percent per month up to 25 percent for                
          failure to pay the amount shown or required to be shown on a                
          return.  A taxpayer may be subject to both section 6651(a)(1) and           
          (2), in which case the amount of the addition to tax under                  
          section 6651(a)(1) is reduced by the amount of the addition to              
          tax under section 6651(a)(2) for any month to which an addition             
          to tax applies under both paragraphs (1) and (2).  The combined             
          amounts under paragraphs (1) and (2) cannot exceed 5 percent per            
          month.  See sec. 6651(c)(1).                                                
               To avoid the additions to tax for filing late returns, a               
          taxpayer bears the burden of proving both (1) that the failure to           
          file did not result from willful neglect, and (2) that the                  
          failure to file was due to reasonable cause.  See United States             
          v. Boyle, 469 U.S. 241, 245 (1985).  If the taxpayer does not               
          meet this burden, the imposition of the addition to tax is                  
          mandatory.  See Heman v. Commissioner, 32 T.C. 479 (1959), affd.            
          283 F.2d 227 (8th Cir. 1960).  Petitioner admits that he failed             








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