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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. 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.
Id.
The additions are applicable unless petitioners establish
that their failure to timely file the returns was due to
reasonable cause and not willful neglect. Id. If petitioners
exercised ordinary business care and prudence and were
nonetheless unable to file their returns within the date
prescribed by law, then reasonable cause exists. 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).
Petitioners’ 1988 and 1989 Federal income tax returns were
due on April 17, 1989, and April 16, 1990, respectively.
Petitioners did not file their returns until June 17, 1997, after
the commencement of the audit.
Petitioner’s separate 1990, 1991, and 1992 Federal income
tax returns were due on April 15, 1991, April 15, 1992, and April
15, 1993, respectively. These returns were also not filed until
June 17, 1997.
Petitioners offered no explanation for their failure to
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