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that petitioner has not presented evidence that he had a
reasonable cause for not filing his 1987, 1988, and 1990 returns.
Furthermore, petitioner has not shown that his failure to file
was not due to willful neglect. Accordingly, we sustain
respondent’s determination with respect to the section 6651(a)
additions to tax.9
Fraud
Respondent determined that petitioner is liable for
additions to tax for fraud under sections 6653(b), 6651(f), and
6663. Respondent seeks to apply (1) the section 6653(b)(1)(A)
and (B) additions to the 1987 adjustment for unreported gross
receipts; (2) the section 6653(b)(1) addition to the 1988
adjustments for unreported gross receipts, unreported capital
gains and unreported interest income; (3) the section 6651(f)
addition for the 1989 fraudulent failure to file an income tax
return;10 and (4) the section 6663 addition for the 1990
adjustments for unreported gross receipts, unreported capital
gains, and unreported interest income.
9 Respondent concedes that no addition to tax under sec.
6651 for the 1987 and 1988 tax years will be assessed with
respect to the portion of the underpayment that is attributable
to fraud. See sec. 6653(d).
10 Under sec. 6664(b), the civil fraud penalty of sec. 6663
determined in the notice of deficiency does not apply because
petitioner did not file a 1989 return. Rather, the fraud
delinquency penalty of sec. 6651(f) applies.
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