- 13 - 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. “ReasonablePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011