Peter Spuler, Jr. - Page 10

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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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