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petitioners’ failure to timely file their Federal income tax
returns for the years at issue.
Section 6651(a)(1) imposes an addition to tax for failure to
file timely a tax return. The addition to tax does not apply if
the failure to file is due to reasonable cause and not to willful
neglect. Id. If a taxpayer exercised ordinary business care and
prudence and was nonetheless unable to file the return within the
date prescribed by law, then reasonable cause exists. Sec.
301.6651-1(c)(1), Proced. & Admin. Regs. “Willful neglect” means
a “conscious, intentional failure or reckless indifference.”
United States v. Boyle, 469 U.S. 241, 245 (1985).
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).
Petitioners’ tax return for 1993 was due April 15, 1994. The
return was prepared, and dated April 1, 1994, by Accufast.
However, petitioners did not sign the return until September 12,
1995, more than a year after the return was prepared. Further,
they did not file the return until another year later; it was filed
on September 16, 1996.
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