Friscia Construction, Incorporated, et al. - Page 21




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         advice with respect to claiming any of the disallowed costs of               
         goods sold or deductions.  Accordingly, we sustain respondent’s              
         determination on the applicability of this penalty.                          
         Issue 8.  Friscia Construction’s Section 6651 Addition to Tax                
              Friscia Construction filed a Form 1120, U.S. Corporation                
         Income Tax Return, for the 1995 taxable year (the 1995 return), on           
         November 8, 1996.  As extended, the due date for Friscia                     
         Construction’s 1995 return was March 15, 1996.                               
              Respondent determined an addition to tax under section                  
         6651(a), asserting that Friscia Construction failed to file a                
         timely 1995 return and that it did not show that its failure was             
         due to reasonable cause.  Michael Friscia testified that he did              
         not know why the 1995 return was filed late.  There is no evidence           
         in the record that Friscia Construction had reasonable cause for             
         filing the 1995 return late.  Accordingly, we hold that Friscia              
         Construction is liable for an addition to tax under section                  
         6651(a).                                                                     
              We have considered all arguments by both parties for holdings           
         contrary to those which we reach herein, and, to the extent not              
         discussed above, have found those arguments to be irrelevant or              
         without merit.                                                               
              To reflect the foregoing and concessions,                               
                                                  Decisions will be entered           
                                            under Rule 155.                           






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