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Petitioner filed his 1996, 1997, and 1998 Federal income tax
returns on January 30, 24, and 30 of 2001, respectively. Before
respondent received the returns, respondent had prepared
substitute returns for those years pursuant to section 6020(b).
On the basis of the substitute returns, respondent issued three
notices of deficiency to petitioner, each dated January 22, 2001,
for the taxable years 1996, 1997, and 1998. Respondent
determined deficiencies and additions to tax under sections
6651(a)(1), (2), and 6654(a) for all 3 years. The deficiencies
differed from the amounts shown as the tax on the respective
returns that petitioner later submitted. Prior to trial,
respondent and petitioner stipulated that the amounts shown as
the tax on the returns that petitioner submitted were the correct
amounts. The parties further stipulated that petitioner’s
correct tax liabilities for 1996 and 1997 ($9,147 and $7,099,
respectively) were not fully paid until petitioner filed the
returns for those years on January 30 and January 24, 2001,
respectively, and that petitioner’s correct tax liability for
1998 ($35,119) had not been paid in full on the date the case was
called for trial.
Discussion
Section 6651(a)(1) imposes an addition to tax for a
taxpayer’s failure to file a required return on or before the
specified filing date, including extensions. The amount of this
addition to tax is 5 percent of the tax required to be shown on
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