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to properly substantiate items constitutes negligence. Sec.
1.6662-3(b)(1), Income Tax Regs. In addition, negligence is
strongly indicated where a taxpayer fails to include on an income
tax return an amount of income shown on an information return.
Sec. 1.6662-3(b)(1)(i), Income Tax Regs.
C. Addition To Tax Under Section 6651(a)(1)
Finally, we consider whether petitioners are liable for an
addition to tax under section 6651(a)(1).
Section 6651(a)(1) imposes an addition to tax for failure to
timely file an income tax return. The addition to tax may be
avoided if the failure to timely file is due to reasonable cause
and not willful neglect. “Reasonable cause” contemplates that
the taxpayer exercised ordinary business care and prudence and
was nonetheless unable to file a return within the prescribed
time. United States v. Boyle, 469 U.S. 241, 246 (1985); sec.
301.6651-1(c)(1), Proced. & Admin. Regs. “Willful neglect” means
a conscious, intentional failure or reckless indifference.
United States v. Boyle, supra at 245.
Section 7491(c) places on the Commissioner the burden of
production with respect to a taxpayer’s liability for any penalty
or addition to tax. However, as previously mentioned, the
taxpayer still has the burden of proving that the Commissioner's
determination of the addition to tax is erroneous. Rule 142(a);
INDOPCO, Inc. v. Commissioner, supra; Welch v. Helvering, supra;
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