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for payment), unless it is shown that such failure
is due to reasonable cause and not due to willful
neglect, there shall be added to the amount shown
as tax on such return 0.5 percent of the amount of
such tax if the failure is for not more than 1
month, with an additional 0.5 percent for each
additional month or fraction thereof during which
such failure continues, not exceeding 25 percent
in the aggregate * * * [Emphasis added.]
On brief, respondent’s only argument with respect to the section
6651(a)(2) addition to tax is as follows:
I.R.C. � 6651(a)(2) imposes an addition to tax for
failure to pay the amount shown as tax on the return.
The addition to tax consists of an addition to the
amount required to be shown as tax on the return of .5%
added for each complete month or part of a month in
which the failure to file continues, up to the maximum
of 25%. Since petitioner did not file federal income
tax returns for the 1996, 1997 and 1998 taxable years
and did not make payment sufficient to pay the amount
of tax that was to be reported on the returns,
petitioner is liable for the addition to tax for
Failure to Pay. [Fn. ref. omitted.]
Respondent’s contentions provide an insufficient basis upon which
to assert the section 6651(a)(2) addition to tax and misstates
the requirements of that section. Section 6651(a)(2) is imposed
on the underpayment of the amount of tax shown on a return. The
parties in this case stipulated that “Petitioner did not file
1996, 1997 or 1998 U.S. Individual Income Tax Returns, (Form
1040).” Given this stipulation and the absence of any additional
evidence indicating the existence of a “return”,4 we hold that
4We are aware of sec. 6651(g), which deals with the effect
of a sec. 6020(b) substitute return on sec. 6651(a)(2). See
Smith v. Commissioner, T.C. Memo. 2000-290 (“A return prepared by
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