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2(a), Income Tax Regs., provides, inter alia:
Income although not actually reduced to a taxpayer’s
possession is constructively received by him in the taxable
year during which it is credited to his account * * *.
However, income is not constructively received if the
taxpayer’s control of its receipt is subject to substantial
limitations or restrictions. * * *
There were no restrictions on petitioner’s ability to withdraw
these funds, and we sustain respondent’s determination.
Failure To File Timely Return
Section 6651(a)(1) provides for an addition to tax where a
return is not timely filed “unless it is shown that such failure
is due to reasonable cause and not due to willful neglect”. The
amount of the addition to tax is “5 percent of the amount * * *
[of the correct tax] if the failure is for not more than 1 month,
with an additional 5 percent for each additional month or
fraction thereof * * * not exceeding 25 percent in the
aggregate”. Sec. 6651(a)(1). Petitioner’s return was filed
October 19, 1999. Respondent initially determined that
petitioner’s return was due August 15, 1999, but now concedes
that the return was due October 15, 1999, and that the maximum
addition to tax is 5 percent. Petitioner does not dispute that
the return was late and offered no evidence or argument with
respect to whether the failure to timely file was due to
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