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As to the section 6651(a)(1) additions to tax for 1998 and
1999, section 6651(a)(1) imposes an addition to tax for failure
to timely file a tax return, unless such failure is due to
reasonable cause and not willful neglect. Additions to tax under
section 6651(a)(1) are imposed unless the taxpayer establishes
that the failure was due to reasonable cause and not willful
neglect. The taxpayer must prove both reasonable cause and a
lack of willful neglect. Crocker v. Commissioner, 92 T.C. 899,
912 (1989). “Reasonable cause” requires the taxpayer to
demonstrate that he exercised ordinary business care and
prudence. United States v. Boyle, 469 U.S. 241, 246 (1985).
Willful neglect is defined as a “conscious, intentional failure
or reckless indifference.” Id. at 245.
Petitioner did not file tax returns for 1998 and 1999.
Petitioner offered no evidence that he had reasonable cause and a
lack of willful neglect. Rather, in tax protester fashion,
petitioner testified that he did not file tax returns for 1998
and 1999 because, under the Internal Revenue Code, “there’s no
requirement to file without tax liability first * * * [and] it
has to be recorded” and that “I have no liability”. Such a
position does not demonstrate reasonable cause. Thus, we
conclude that petitioner is liable for the additions to tax under
section 6651(a)(1) for 1998 and 1999.
We next consider whether petitioner is liable for the
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Last modified: May 25, 2011