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H. Additions to Tax and Penalties
Failure To File
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.
To avoid the additions to tax for filing late returns, a
taxpayer must show (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 his 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 failed to file returns for 1987 and 1988, and
petitioner’s 1990 return was filed more than 4 months late, which
would result in the imposition of the maximum 25-percent rate for
1987, 1988, and 1990. Petitioner stated that Mr. Perry handled
the bank records and checks associated with his law practice but
that Mr. Perry’s office burned down, and he died in either 1988
or 1989. Therefore, petitioner claims he had trouble
reconstructing the records. Petitioner, however, failed to
present any evidence that a fire destroyed petitioner’s records,
preventing him from filing returns. Accordingly, we view
petitioner’s testimony as self-serving and unconvincing and find
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