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Section 6651(a)(1) imposes an addition to tax for failure to
timely file a tax return. The addition to tax is equal to 5
percent of the amount of the tax required to be shown on the
return if the failure to file is not for more than 1 month. See
sec. 6651(a)(1). An additional 5 percent is imposed for each
month or fraction thereof in which the failure to file continues,
to a maximum of 25 percent of the tax. See id.
The addition is applicable unless petitioner establishes
that his failure to file was due to reasonable cause and not
willful neglect. See id. If petitioner exercised ordinary
business care and prudence and was nonetheless unable to file his
return within the date prescribed by law, then reasonable cause
exists. See sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
“Willful neglect” means a “conscious, intentional failure or
reckless indifference.” United States v. Boyle, 469 U.S. 241,
245 (1985).
Petitioner’s 1994 Federal income tax return was due on April
17, 1995. Petitioner did not file his 1994 Federal income tax
return until November 30, 1998, after the commencement of the
audit.
Petitioner contends that he was not required to file a 1994
return to report the $3,981.05 in interest income because he
relied on information provided in Table 1-1, 1994 Filing
Requirement Chart for Most Taxpayers, of the 1994 Federal income
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Last modified: May 25, 2011