Robert J. & Shari L. Hartz - Page 14




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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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