-31-
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).
Section 6656 imposes an addition to tax equal to 10 percent
of the portion of an underpayment in tax that is required to be
deposited if the failure to deposit is more than 15 days. As is
true with respect to an addition to tax under section 6651(a), a
taxpayer may avoid an addition to tax under section 6656 if the
taxpayer’s failure to deposit a tax was due to reasonable cause
and not willful neglect. Van Camp & Bennion v. United States,
251 F.3d 862 (9th Cir. 2001); Ellwest Stereo Theatres, Inc. v.
Commissioner, T.C. Memo. 1995-610.
Respondent conceded at trial that section 7491(c) applies to
place on him the burden of production as to the additions to
tax.11 In order to meet this burden, respondent must present
sufficient evidence to persuade the Court that it is appropriate
to impose the additions to tax. Higbee v. Commissioner, 116 T.C.
438, 446 (2001). If respondent does so, petitioner, in order to
prevail, must present sufficient evidence to persuade the Court
11 In that we have found that the examination of most of the
years commenced before the effective date of sec. 7491(c), we
have difficulty understanding respondent’s blanket concession.
All the same, we decide the issue as to penalties giving full
regard to this concession.
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