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liability and made arrangements to pay their approximate 1997 tax
liability when it fell due.
Petitioners argue that petitioner’s law practice net profits
in later years were not high enough to pay their unusually high
tax liability for 1997. This argument is a nonstarter.
Petitioners should have set aside in liquid form sufficient
proceeds of their high income for 1997 to enable them to use
those proceeds to pay the tax for that year.
In failing to provide for payment of their tax liability,
petitioners did not exercise ordinary care and prudence; they did
not show they would have suffered an undue hardship if they paid
on the due date because they prevented themselves from doing so.
Petitioners did not have reasonable cause for failing to pay
their 1997 income tax timely. Petitioners are liable for the
addition to tax under section 6651(a)(2) in the section 6330
cases for the period April 15 to October 15, 1998, and November
17, 1998, to the date or dates of payment up to the maximum
statutory amount.
5. Late Filing of 1997 Return
a. Section 6651(a)(1) Addition to Tax in the
Section 6330 Cases
For failure to file a Federal income tax return by its due
date, including valid extensions, there shall be added to the
amount required to be shown as tax on such return 5 percent of
the amount of such tax if the failure is for not more than 1
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