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any part of the tax paid on or before the date prescribed for
payment and by the amount of any credit against tax which may be
claimed on the return. Sec. 6651(b)(1). The addition to tax for
failure to file a timely return does not apply where the taxpayer
shows that such failure is due to reasonable cause and not due to
willful neglect. Sec. 6651(a)(1).
The addition to tax for failure to pay timely is 0.5 percent
of the amount shown as tax on the return for each month, or
fraction thereof, during which the failure to pay continues, up
to a maximum of 25 percent. Sec. 6651(a)(2). Under section
6651(g)(2), a substitute return prepared by the Commissioner
under section 6020(b) is treated as a return filed by the
taxpayer for returns due after July 30, 1996 (determined without
regard to extensions). See Taxpayer Bill of Rights 2, Pub. L.
104-168, sec. 1301(b), 110 Stat. 1475; Smith v. Commissioner,
T.C. Memo. 2000-290; sec. 301.6651-1(g), Proced. & Admin. Regs.
Respondent’s determination that petitioner is liable for the
addition with respect to his 1995 tax year, the return for which
was due before July 30, 1996, is not based on an amount shown as
tax on a return filed by petitioner. Petitioner did not file a
return prior to the issuance of the notice of deficiency for
1995.4 See Heisey v. Commissioner, T.C. Memo. 2002-41.
4Respondent has not argued that the delinquent return filed
by petitioner with respect to 1995 constitutes a return for
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