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25-percent addition to tax under section 6651(a).
B. Respondent’s Section 6653(a)(1) Determination
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the entire underpayment if any portion of such
underpayment is due to negligence or intentional disregard of
rules or regulations (without distinction, negligence). An
underpayment, for purposes of section 6653(a), is the amount by
which the tax liability exceeds the tax shown on a timely filed
return. Secs. 6653(c)(1), 6211(a). Inasmuch as the 1988 return
was not timely filed, the amount shown on a timely filed return
is zero, and the underpayment equals the entire tax liability.
Emmons v. Commissioner, 92 T.C. 342, 348-349 (1989), affd. on
another issue 898 F.2d 50 (5th Cir. 1990). When an underpayment
is caused by the taxpayer’s failure to timely file an income tax
return, the underpayment is due to negligence if the taxpayer
lacks reasonable cause for the failure. See id. at 349-350.
Because we find that petitioner lacked reasonable cause for his
failure to timely file the 1988 return, it follows, and we find,
that his underpayment was due to negligence. Id.
Moreover, we reach the same result even if we view the issue
to be whether petitioner had a reasonable basis for the
underpayment itself. Section 6653(g) provides that any portion
of an underpayment that is attributable to a taxpayer’s failure
to report income shown on an information return shall be treated
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