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142(a)(1), we hold that deposits of $57,339 are includable in
petitioner’s gross income for 1994 as taxable rents.
Late-Filing Additions to Tax
Section 6651(a)(1) imposes an addition to tax for failure to
file a return by the required filing date, including extensions.
The addition is 5 percent of the amount required to be shown as
tax on the delinquent return for each month the return is late
(not to exceed 25 percent). Id. The taxpayer is excused from
the late-filing addition if he shows that the late filing was due
to reasonable cause and not due to willful neglect, id.; however,
the taxpayer bears the burden of proof on this issue, Rule
142(a)(1); BJR Corp. v. Commissioner, 67 T.C. 111, 131 (1976).
In the cases at hand, petitioner filed his 1992 and 1993
individual tax returns after the extended due date. At trial,
petitioner explained why he had requested the extension but not
why he filed after the extended date. Because petitioner has not
met his burden of proving reasonable cause for the late filings,
he is liable for the section 6651(a)(1) addition to tax. See
Rule 142(a)(1).
Accuracy-Related Penalties
Section 6662 imposes a 20-percent penalty on any portion of
an underpayment of tax that is attributable to, among other
things, negligence or disregard of rules or regulations. Sec.
6662(a) and (b).
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