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the Winnebago was the result of theft, so we need not address any
issues of amount or timing. See sec. 165(c)(3), (e), (h).
Section 6651(a)(1) Addition to Tax
Petitioner’s individual Federal income tax return for
taxable year 1995 was dated September 12, 1997, postmarked
September 13, 1997, and received by the Internal Revenue Service
on September 19, 1997. The return showed a tax liability of
$28,240 and stated that no payments had been made to satisfy that
liability. Respondent determined that petitioner is liable for
an addition to tax under section 6651(a)(1) for 1995 for failure
to file a return by the prescribed date.
Section 6651(a)(1) imposes an addition to tax equal to 5
percent of the amount required to be shown as tax on a return for
each month or fraction thereof past the prescribed due date in
which the return is not filed, not to exceed a total of 25
percent. Generally, the amount of the addition to tax under
section 6651(a)(1) is reduced by the amount of any addition to
tax imposed under section 6651(a)(2) (which relates to failure to
pay the tax shown on a return by the prescribed date) with
respect to each month in which both are otherwise applicable.
Sec. 6651(c)(1).
A taxpayer may avoid the addition to tax under section
6651(a)(1) if he establishes that the failure to file is due to
reasonable cause and not due to willful neglect. “Reasonable
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