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testified that he would venture to guess that he was an
independent contractor. However, petitioner presented no
evidence at trial establishing his employment status with Merkle
or the amount of compensation he received from the company.
By presenting absolutely no evidence establishing that the
$10,393 of unreported income is not subject to self-employment
tax, petitioner has not met his burden with respect to this
issue. Accordingly, we hold that petitioner is liable for self-
employment tax on the $10,393 of unreported income.
3. Section 6651(a)(1) Addition to Tax
Respondent determined an addition to tax as a result of
petitioner’s failure to timely file his Federal income tax return
for the year at issue. Section 6651(a)(1) imposes an addition to
tax for failure to file a timely tax return. The 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
addition to tax is imposed on the net amount due. Sec. 6651(b).
The addition to tax is applicable unless a taxpayer
establishes that the failure to file was due to reasonable cause
and not willful neglect. Sec. 6651(a). If a taxpayer exercised
ordinary business care and prudence and was nonetheless unable to
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Last modified: May 25, 2011