- 11 - willful neglect. “Reasonable cause” contemplates that the taxpayer exercised ordinary business care and prudence in providing for payment of the taxpayer’s tax liability and was nonetheless unable to pay the tax or would suffer an undue hardship if the tax were paid within the prescribed time. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs. “Willful neglect” means a conscious, intentional failure or reckless indifference. United States v. Boyle, supra at 245. In the present case, petitioner paid only a relatively small portion of his tax liability for 1996 and failed to pay any of his tax liability for 1997. Petitioner offered no evidence whatsoever that would support a finding that his failure to pay was due to reasonable cause and not willful neglect. In view of the foregoing, we hold that petitioner is liable for the additions to tax under section 6651(a)(2) as determined by respondent in the notices of deficiency. E. Additions to Tax for Failure To Pay Estimated Tax Section 6654 imposes an addition to tax for failure to pay estimated tax. As applicable herein, imposition of the addition is mandatory whenever prepayments of tax, either through withholding or the making of estimated quarterly tax payments during the course of the taxable year, do not equal the percentage of total liability required under the statute. See sec. 6654(a); Niedringhaus v. Commissioner, 99 T.C. 202, 222Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011