- 10 -
Petitioner did not consult with an accountant or attorney about
this matter. Petitioner’s 1993 return was filed on July 3, 1996.
In the case of failure to file an income tax return on the
date prescribed for filing, section 6651(a)(1) imposes an
addition to tax equal to 5 percent of the amount required to be
shown on the return, with an additional 5 percent to be added for
each month during which such failure continues, not to exceed 25
percent in the aggregate. The addition to tax for failure to
file a timely return is imposed unless the taxpayer shows that
the delay was due to reasonable cause and not willful neglect.
See sec. 6651(a)(1); United States v. Boyle, 469 U.S. 241, 245
(1985). A failure to file is due to “reasonable cause” if the
taxpayer exercised ordinary business care and prudence and was,
nevertheless, unable to file the return within the time
prescribed by law. United States v. Boyle, supra at 246. While
reliance on advice as to whether a return must be filed may
constitute reasonable cause, the person giving advice must be
competent to render that advice and the reliance on that advice
must be reasonable. See id. at 250.
Petitioner has not demonstrated that the coworker giving the
advice was competent to give such advice. Such erroneous advice
does not constitute reasonable cause for petitioner’s failure to
comply with the statutory requirements. Lastly, petitioner did
not seek professional advice about filing requirements.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011