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return were not “normally” due on October 15, 1998, but instead
on April 15, 1998. However, respondent concedes that the news
release may have confused petitioners and for that reason
concedes petitioners have reasonable cause under section
6651(a)(1) and (2) for failing to file and pay for the period
October 15 to November 16, 1998.
Respondent assessed the section 6651(a)(1) addition to tax
for late filing for the period November 17 through December 21,
1998. Respondent did not assess the section 6651(a)(2) addition
to tax for late payment from October 15 to November 16, 1998;
instead, respondent assessed the late payment addition for the
period April 16 through October 15, 1998, and the period November
17, 1998, to the date of payment by petitioners.
4. Late Payment of Tax
a. Failure To Pay Estimated Tax
Petitioners first failed to satisfy their tax obligations by
failing to pay any 1997 estimated tax as required by section
6654(a). Petitioners argue in their brief, without explanation,
that respondent should have exercised his authority to waive the
section 6654(a) addition to tax because this is a case where, by
reason of a casualty or disaster, the imposition of that addition
to tax would be against equity and good conscience. See sec.
6654(e)(3)(A).
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