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assume that the typical documents were involved, including some
form or document wherein petitioner authorized the settlement
agent to mail the joint check to her former spouse rather than to
her. Having consented to and authorized the sale of the
townhouse, and the manner in which the transaction occurred, she
is responsible for the Federal income tax consequences that stem
from it. Respondent’s determination that petitioner must include
in her 1994 income her share of the gain from the sale of the
townhouse is therefore sustained.
Respondent also determined that petitioner is liable for the
addition to tax for her failure to file a timely 1994 Federal
income tax return. Taking into account an extension,
petitioner’s 1994 return was due to be filed on or before August
15, 1995. See sec. 6081(a). Her return was not filed until
November 19, 1996.
Section 6651(a)(1) provides for an addition to tax in an
amount equal to 5 percent of the amount of the tax shown on the
return for the first month, plus an additional 5 percent for each
additional month or fraction of a month during which the failure
to file continues, up to a maximum of 25 percent of the tax in
the aggregate. This addition to tax is applicable unless the
taxpayer can demonstrate that the failure is due to a reasonable
cause and not due to willful neglect. See United States v.
Boyle, 469 U.S. 241, 245-246 (1985).
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