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maximum of 25 percent of the tax. Id.
Section 6656(a) imposes an addition of tax for failure to
deposit any amount of tax with a Government depository. As
relevant herein, the addition to tax is equal to 10 percent if
the failure is for more than 15 days. Sec. 6656(b)(1)(A)(iii).
Both sections 6651(a)(1) and 6656(a) impose liability unless
“such failure is due to reasonable cause and not due to willful
neglect”. “Willful neglect” means a “conscious, intentional
failure or reckless indifference.” United States v. Boyle, 469
U.S. 241, 245 (1985). Reasonable cause is found if the taxpayer
exercised ordinary business care and prudence but was
nevertheless unable to perform its tax obligations in a timely
manner. Brewery, Inc. v. United States, 33 F.3d 589, 592 (6th
Cir. 1994); sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
Petitioner advanced no reasons why his employment tax
returns for the years at issue were not filed timely or why he
failed to pay and deposit the employment taxes. Respondent,
therefore, is sustained on the additions to tax under sections
6651(a)(1) and 6656(a).
We have considered all arguments by the parties, and, to the
extent not discussed above, conclude they are irrelevant or
without merit.
Reviewed and adopted as the report of the Small Tax Case
Division.
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