Robert Conrad Eanes II - Page 7




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          hospital insurance benefits to self-employed persons.  The                  
          obligation to pay self-employment tax is mandatory if the                   
          requirements of section 1401 are met as they are in this case.              
          We hold, therefore, that petitioner is liable for self-employment           
          tax as modified by respondent.                                              
          Additions to Tax Under Section 6651(a)(1)                                   
               Section 6651(a)(1) authorizes the imposition of an addition            
          to tax for failure to file a timely return, unless it is shown              
          that such failure is due to reasonable cause and not due to                 
          willful neglect.  See sec. 6651(a)(1); United States v. Boyle,              
          469 U.S. 241, 245 (1985); United States v. Nordbrock, 38 F.3d               
          440, 444 (9th Cir. 1994); Harris v. Commissioner, T.C. Memo.                
          1998-332.  A failure to file a timely Federal income tax return             
          is due to reasonable cause if the taxpayer exercised ordinary               
          business care and prudence and, nevertheless, was unable to file            
          the return within the prescribed time.  See sec.                            
          301.6651-1(c)(1), Proced. & Admin. Regs.  Willful neglect means a           
          conscious, intentional failure to file or reckless indifference             
          toward filing.  See United States v. Boyle, supra.                          
               Petitioner concedes he did not file Federal income tax                 
          returns or applications for extensions of time to file for 1990             
          through 1997.  Petitioner contends that he did not file returns             
          because he did not have money to pay the taxes he owed at the               
          time the returns were due, and it was his understanding that the            






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