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addition to tax for failure to file a tax return in a timely
manner, unless such failure was due to reasonable cause and not
due to willful neglect. There was no reasonable cause for the
delay in filing the returns, and, thus, David is liable for the
section 6651(a)(1) additions to tax. See, e.g., Higbee v.
Commissioner, 116 T.C. 438, 447-448 (2001). Section 6654(a)
provides an addition to tax for failure to pay estimated income
tax. David filed no returns and made no estimated tax payments
relating to 1983, 1984, and 1985 and, thus, is liable for those
additions to tax. See, e.g., Niedringhaus v. Commissioner, 99
T.C. 202, 222-223 (1992). Section 6661 provides for an addition
to tax for substantial understatements reduced by the portion for
which there is substantial authority or adequate disclosure.
David’s understatements were not based on substantial authority
or adequately disclosed, and, thus, David is liable for those
additions to tax. See, e.g., Cluck v. Commissioner, 105 T.C.
324, 340 (1995).
Respondent also determined additions to tax pursuant to
section 6653(a) and accuracy-related penalties pursuant to
section 6662(a). Petitioners’ failure to keep records and file
timely and accurate returns was due to negligence. See, e.g.,
Higbee v. Commissioner, supra at 449; Niedringhaus v.
Commissioner, supra at 222. Accordingly, petitioners are liable
for those additions to tax and accuracy-related penalties.
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