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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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