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Additions To Tax for Failure To File Timely Under Section 6651(a)
Petitioner’s 1995 and 1996 Federal income tax returns were
not timely filed. Petitioner does not assert, nor did he present
any evidence, that the returns for the years in issue were
received or mailed prior to the due date as extended.
Section 6651(a) imposes an addition to tax of 5 percent of
the amount of such tax required to be shown on the return per
month, not to exceed 25 percent, for failure to timely file a
return. The addition to tax under section 6651(a) is imposed
unless the taxpayer establishes that the failure was due to
reasonable cause and not willful neglect. The record does not
establish that the failures to timely file were due to reasonable
cause and not willful neglect. Thus, respondent is sustained on
this issue.
Accuracy Related Penalties Under Section 6662(a)
Section 6662(a) imposes an accuracy-related penalty in the
amount of 20 percent of the portion of the underpayment of tax
attributable to negligence or disregard of rules or regulations.
See sec. 6662(b)(1). Negligence is any failure to make a
reasonable attempt to comply with the provisions of the internal
revenue laws. See sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax
Regs. Moreover, negligence is the failure to exercise due care
or the failure to do what a reasonable and prudent person would
do under the circumstances. Neely v. Commissioner, 85 T.C. 934,
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Last modified: May 25, 2011