-30-
with respect to the disputed payments and is not entitled to
relief under section 530 of the Revenue Act of 1978.10
5. Additions to Tax
Respondent determined that petitioner is liable for
additions to tax under sections 6651(a) and 6656 by virtue of its
failure to file Forms 941 for certain quarters and to deposit the
requisite amount of taxes for those and other quarters. Section
6651(a)(1) imposes an addition to tax for failing to file a
return on or before the specified filing date unless it is shown
that such failure is due to reasonable cause and not due to
willful neglect. The addition to tax equals 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. 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. The addition to tax is imposed on the net amount due. Sec.
6651(a)(1) and (b). 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.
10 We note as alternative reasoning leading to this holding
that Ms. Odell was petitioner’s statutory employee under sec.
3121(d)(1) (i.e., a corporate officer who performed more than
minor services for the corporation, see sec. 31.3121(d)-1(b),
Employment Tax Regs.) and that we recently indicated in Joseph M.
Grey Pub. Accountant, P.C. v. Commissioner, 119 T.C. 121 (2002),
that relief under the Revenue Act of 1978, Pub L. 95-600,
92 Stat. 2763, 2885, is limited to worker classification issues
arising under common law.
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