- 12 -
not, we think that, except as noted with respect to the addition
to tax under section 6654, the evidence is sufficient to sustain
the remaining additions to tax and the penalty.
Petitioner’s 1994 Federal income tax return was filed no
earlier than May 20, 1996. She received an automatic extension
to file and pay until June 15, 1995. See sec. 1.6081-5, Income
Tax Regs. Subsequently, she was granted an additional 2-month
extension to file, so that her return was due by August 15, 1995.
Petitioner, therefore, failed to file her return by the date
prescribed in section 6651(a)(1). Further, on the face of the
1994 return, there is a substantial underpayment. Thus, even if
respondent bears the burden of production because of section
7491(c), he has sustained that burden with respect to the
addition to tax and penalty determined under sections 6651(a) and
6662(a), respectively.
D. Petitioner’s Defenses
Petitioner has no defense to the additions to tax under
section 6651(a) for failure to file. Petitioner’s defense to the
penalty under section 6662(a) for negligence is that she had
reasonable cause for “relying on the language of the Separation
Agreement”. We take that claim to be that there was reasonable
cause for the underpayment because petitioner had reasonable
cause for relying on the agreement.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011