Fortunato J. Mendes - Page 20

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          (and was common practice during the audit year) for banks to                
          withhold the tax.  This Court is not bound to accept a taxpayer’s           
          self-serving, unverified, and undocumented testimony.  Shea v.              
          Commissioner, 112 T.C. 183, 189 (1999).  Therefore, we sustain              
          respondent’s imposition of the 10-percent additional tax on early           
          distributions from qualified retirement plans.                              
          VII.  Additions to Tax                                                      
               A.  Respondent’s Section 6651(a)(1) Determination                      
               Section 6651(a)(1) provides for an addition to tax in the              
          event a taxpayer fails to file a timely return (determined with             
          regard to any extension of time for filing), unless it is shown             
          that such failure is due to reasonable cause and not due to                 
          willful neglect.  The amount of the addition is equal to 5                  
          percent of the amount required to be shown as tax on the                    
          delinquent return for each month or fraction thereof during which           
          the return remains delinquent, up to a maximum addition of 25               
          percent for returns more than 4 months delinquent.                          
               The 1988 return was not filed until on or about May 14,                
          1997, more than 8 years after the April 17, 1989, due date.  See            
          sec. 6072(a).10  Petitioner argues that, because he believed in             
          good faith that his attorney had timely filed a 1988 return for             
          him, the failure to timely file the return was due to reasonable            


               10  There is no evidence that petitioner timely sought to              
          extend the Apr. 17 due date.                                                





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